Assisted Living Feasibility Study in Connecticut

Close to the national pattern, with a smaller ticket

Connecticut sits in the middle of the assisted living record. The state ranks 17 of 50 for this class, assisted living without nursing care, while at the state level the class stands 19 of 39. The location quotient is 0.87x, a touch below the national share, while a median of $559,500 comes to 0.74x the national median. From FY2017 to FY2026 the state approved 30 loans for $24.0 million. What the cell shows, then, is a class that is present but not prominent, financed with loans that run smaller than in many states.

Program mix, lenders and places

The middle half of loans runs from $129,750 to $1.0 million. SBA 7(a) carried 22 of the loans and SBA 504 carried 8. Franchising is not a factor, at 0.00%. Two lenders tie for first among 7(a) lenders on count: Live Oak Banking Company, with 5 loans worth $5.8 million, and Newtek Bank, National Association, also with 5 but only $2.6 million. Equal counts with unequal dollars mean the first of the two writes larger loans. Connecticut's planning regions give the geography: Capitol leads with 9 loans, South Central Connecticut has 6, Western Connecticut 4 and Naugatuck Valley 3. Volume rose late in the period, to 8 loans in FY2024 and 7 in FY2025, after years with none in FY2018 and FY2020.

What the code does and does not cover

The class label is narrower than it sounds: a code exists only for homes with no nursing on site. Memory care carries no code of its own, and homes that do employ nurses are filed in the skilled nursing and care-community classes, so a Connecticut project mixing acuity levels should also be read against those pages. For Connecticut, no cancellation or charge-off rate is published: a rate needs more loans than this cohort has, and an unpublished value is not a zero.

Tests for a Connecticut care home

A Connecticut study should test the market in terms residents and families understand: the seniors in the trade area who can pay private rates, the licensed homes already operating nearby, and the length of the lease-up before beds fill. Because the state's loans tend to be modest, project cost matters as much as demand; a conversion of an existing building and a new build will sit at very different points in the loan range. Coverage of the loan payment ought to be demonstrated at full occupancy and again with beds filling slowly. An appraiser values these homes on the income their beds earn, so the study's revenue assumptions have to be ones the appraisal can defend. Staffing cost, which the loan figures do not show, belongs in the operating forecast.