MINNESOTA · NAICS NAICS 445310, 445320
Minnesota's municipal liquor system, where many cities operate their own stores, reshapes private trade areas in ways the demand analysis must capture. Where license and goodwill value exceeds $250,000 of intangibles, the independent going-concern appraisal applies alongside any study.
FEASIBILITY TRIGGER
License and goodwill value above $250,000 of intangibles triggers the independent going-concern appraisal alongside any study; Minnesota's municipal liquor system reshapes private trade areas in ways the demand analysis must capture.
Minnesota generated 275 SBA-disbursed liquor store loans between FY2010 and FY2026, worth $129.8 million in approved 7(a) and 504 financing at an average of $472,000 per deal. Ranked #12 of 38 states for liquor store SBA volume, the state captures 2.4% of national liquor store dollars. 90.5% of the loans ran through 7(a) with 504 covering the remainder; 30 approvals have posted since FY2024.
| Disbursed loans (FY2010–FY2026) | 275 |
| Approved volume | $129.8 million |
| Average loan size | $472,000 |
| 7(a) share | 90.5% |
| Approvals since FY2024 | 30 |
| State rank by loan count | #12 of 38 |
Among the 212 seasoned loans in this segment (approvals FY2010–FY2021), 8.5% reached adverse resolution — purchased, liquidated, or charged off. The national benchmark for liquor store is 4.4%, against 7.3% across all industries. That performance runs above the national benchmark for this asset class, which is a factor lenders weigh in their credit decision.
Source: SBA 7(a) and 504 FOIA loan-level data, as of March 31, 2026. Disbursed loans only. See data methodology.
A 8.5% adverse-resolution rate against the national liquor store benchmark of 4.4% tells credit committees to scrutinize revenue projections and coverage assumptions closely on Minnesota deals in this class. A rigorous third-party feasibility study — built on documented demand, defensible pricing, and stressed coverage — carries meaningful weight in that underwriting conversation, particularly at an average loan size of $472,000 across 275 loans.
Every Minnesota liquor stores project we underwrite follows the same lender ready process: independent market analysis, site and technical review, and financial projections tested against SBA SOP 50 10 8 standards. Our SBA feasibility study consultants guide explains scope, timing, deliverables, and what lenders and CDCs expect in the report.
Minnesota projects often pencil under SBA 504 because the 50/40/10 structure delivers up to 90 percent financing on owner-occupied real estate at a fixed debenture rate, and the state's calendar 2025 average rate ran 0.63 points below the national figure. SBA 7(a) covers acquisitions, working capital, and equipment, and from July 4, 2026 eligible borrowers can combine 7(a) and 504 for up to $10 million in total program credit.
Minnesota's municipal liquor system, where many cities operate their own stores, reshapes private trade areas in ways the demand analysis must capture across the state.
For a national view of this asset class, see our liquor store SBA feasibility overview, and read our related analysis in the liquor store lending research on our blog.
Fifteen-minute scoping call, written proposal inside one business day, firm fixed fee before you sign.
Book a Meeting