Cresha- nice layout. Here's a few ideas:
1) check out your lighting, there is something else you can install instead of flourescent that is closer to natural lighting. I remember a book I bought for hubby for garage organization that had it. He had already purchased the lighting so it was too late for him.
2) agree, move the peg board to another area.
3) will you be displaying your quilts anywhere?
4) the one lqs has the machine in a "separate room"- it has plexiglass so people can see it, but not touch.
I know for home based businesses, they aren't as rigid for handicapped facilities, but since this is a garage makeover, you still may not have to do anything. Just a sign that says facilities not available will help.
Enjoy your new adventure! Where are you in PA- maybe I need to employ your services!
Barb