Assisted Living Feasibility Study in Oregon

Strong presence, ordinary loan size

Oregon is a place where assisted living is lent against more often than the national pattern suggests. SBA approved 55 loans for assisted living without on-site nursing across FY2017 to FY2026, with $55.4 million of dollars, and a location quotient of 1.33x. The state ranks 12 of 50 for the class, though care homes sit at 14 of 39 among Oregon asset classes. The median of $652,000 is 0.86x the national class median, so loans are a little smaller than elsewhere, and half of them lie between $335,000 and $1.1 million. In this cell no outcome metric is flagged against the state record or against the class nationally, so its main feature is its weight in the state.

Lenders and geography

The 7(a) program carried 53 loans and 504 only 2, and no loan is a franchise. Columbia Bank leads with 10 loans and $10.6 million. Live Oak Banking Company has 5 loans and $7.5 million, and Commonwealth Business Bank has 5 and $4.4 million. Clackamas County accounts for 18 loans, Multnomah for 12, Washington for 9 and Polk for 6, so the record is concentrated in the three largest counties plus Polk.

A rising trend and a real cancellation risk

Lending dipped to 2 loans in FY2021 with $5.0 million, then climbed to 9 loans in FY2023, 7 loans and $11.3 million in FY2025, and 10 loans and $10.1 million in FY2026. Cancellation is a concern: at least 13.2% of approvals through FY2024 never funded, and the ceiling counting undisbursed loans is 15.8%. Oregon carries no printed loss rate, because its early funded cohort is under 30 loans.

Questions for an Oregon care home study

A study for an assisted living home must show who will live there and who will pay. Count seniors in the catchment by age and income, check the supply of licensed beds nearby, and test the monthly rate against both private pay capacity and competing homes. Staffing is the largest cost, so wages, caregiver turnover and licensing requirements belong in the pro forma, with the ramp of resident move ins set out month by month. Lenders will look for coverage that survives a slow fill and a vacancy dip once the home is open. The appraisal rests on the licensed capacity and the income it earns, which is why the cancellation floor here should push a sponsor to document every assumption before closing.

A coding limit

Care homes with no nursing on site are the only ones in the class; memory care has no code, and homes with nursing are counted in separate classes, so an operator mixing services should read those pages as well.