Behavioral Health Feasibility Study in Virginia

Virginia behavioral health: a location quotient of 1.69x

Behavioral health and addiction treatment takes a bigger part of Virginia lending than it does elsewhere, with a location quotient of 1.69x. Providers here are not a rarity in the SBA book. The cell logs 35 approvals worth $21.3 million over FY2017 to FY2026, and Virginia sits 12 of 52 among states. Within Virginia the class holds 17 of 39. The $309,000 median is 1.03x the usual national ticket, with the central half of loans between $175,000 to $451,100. The cell has no distinctive metric.

Providers used 7(a) for 30 loans and 504 for 5, and 5.7% report a franchise. Celtic Bank Corporation alone reaches the 5-loan mark, with $1.4 million. Henrico County has 9 loans, Fairfax 5 and Chesterfield 4, with Arlington, Prince William and the cities of Chesapeake and Richmond at 2 each. Henrico County has the most. Loan Analytics prints no cancellation or loss rate for Virginia treatment providers, since Loan Analytics shows a rate only for cohorts of at least 30 loans, and the blanks should be read as missing evidence.

The yearly record

FY2018 produced 7 loans worth $1.8 million, FY2020 produced 5 worth $6.6 million, and FY2022 recorded 0. FY2026 shows 4 loans worth $6.0 million, the top dollar figure of any year, which suggests larger projects lately. Dollar totals jump around because a single residential treatment property can outweigh several outpatient offices, and a lender should ask which kind of operator sits behind any given year.

Questions for a Virginia treatment provider

The study must define the service: outpatient counseling, intensive programs or residential treatment, because licensing, staffing and reimbursement differ sharply. Demand means referral sources, insurance contracts and the supply of clinicians. Cost depends on licensure requirements, building code for residential use, and neighborhood approval. Debt service coverage depends on census and payer mix, and on denial rates, which can hit cash flow. The appraisal should consider that a special-purpose treatment building may have a narrow buyer pool. The category cannot separate behavioral health from addiction treatment, since both topics share the same codes, so the figures above mix two kinds of providers. Because the Virginia cohort is small, a single large project can move the dollar totals, so the study should treat the median of $309,000 as a guide to typical size and not as a promise of what any one provider will borrow.