Fitness Center Feasibility Study in Mississippi

A steady class with a slow base

Mississippi fitness center lending is small, steady and low in cancellations. From FY2017 to FY2026 the state records 52 loans worth $20.4 million. The median of $271,050 is 1.05x the national median, so Mississippi borrowers take loans of an ordinary size, and the central half runs from $117,975 to $425,250. The class ranks only 39 of 54 across the states yet 5 of 39 within Mississippi, a striking position given its modest national standing, and the location quotient of 0.78x tells us that gyms are a thinner slice of Mississippi's SBA portfolio than of the nation's. No metric is marked as a standout.

Programs and lenders

SBA 7(a) made 50 loans and SBA 504 made 2, so these are mostly equipment, leasehold and working capital loans, with franchises behind 23.1%. Community Bank of Mississippi has 11 loans worth $3.5 million, and Peoples Bank has 7 worth $1.7 million, a pair of local banks. Hinds County has 10 loans, Rankin 7 and Madison 5, which points to the Jackson area, with Harrison, Lauderdale and Pearl River at 3 each.

Timing

Yearly counts ranged from 2 loans in FY2020, worth $337,600, up to 9 in FY2021. FY2018 brought 7 loans and $3.2 million, and FY2026 shows 4 loans but $4.9 million, the largest dollar year, which hints at a bigger project or building purchase.

What the early numbers say

Cancellations were rare: the floor is 2.3% of approvals over FY2017 to FY2024, and the strict reading is identical. That is a low floor, and it suggests lenders approved prepared applicants. A loss rate is left out because the early disbursed window holds under 30 loans; leaving it out is not a claim that no losses occurred.

What the study must test

The study for a Mississippi gym should count households within a short drive who can afford a recurring membership, then map existing clubs, big-box gyms and boutique studios nearby. Revenue depends on member count, churn and the mix of price tiers, so the plan should model sign-ups by month with realistic attrition, and not a flat roster. Build-out and equipment spending should be set beside a ticket near $271,050. Model repayment through a slow first year, and keep an equipment replacement reserve. An appraiser has little to value in a leased club except equipment, so cash flow carries the credit decision.