Fitness Center Feasibility Study in Washington

Washington's gyms borrow more per loan than gyms elsewhere, and on that measure this cell departs from both the state's own SBA record and the class nationally. The median fitness loan in Washington is $346,000, or 1.33x the class's national median; its middle half stretches from $100,000 to $602,950. The state approved 335 fitness loans from FY2017 to FY2026 for $181.5 million, 15 of 54 among states. Gyms rank 5 of 39 within Washington, and the location quotient of 1.00x puts their share of the state's loans exactly at the national share.

Bigger loans, a lighter loss floor

Larger loans have not brought fitness level losses. Of 134 disbursed in FY2017 to FY2021, 3.7% have been charged off to date, below the fitness class nationally though above Washington's all class floor. The rate within five years is also 3.7%: every charge-off in the cohort so far came early, which tells a lender where the risk sits. Cancellation is moderate, 10.3% of FY2017 to FY2024 approvals, or 11.1% with undisbursed loans counted. Both rates are floors.

Lenders and where they lend

The mix is 312 loans under 7(a) and 23 under 504, and franchise borrowers make up 41.8%. KeyBank National Association leads with 54 loans for $23.3 million, followed by U.S. Bank, National Association (32 loans, $16.9 million), Columbia Bank (17), Wells Fargo Bank National Association (15) and Washington Trust Bank (12 loans, $8.7 million). Among certified development companies, Northwest Business Development Association has 11 loans for $9.3 million and Ameritrust CDC 7 for $8.3 million. King County dominates with 133 loans, ahead of Pierce (45), Snohomish (32) and Spokane (29). Volume swung from 15 loans in FY2017 to 48 in FY2019, down to 20 in FY2022, and up to 57 for $34.5 million in FY2025.

What a Washington fitness study should prove

A project asking for a loan near the Washington median is asking for more than the national typical gym, so the study has to justify the larger build out. That starts with demand: members within a realistic drive, the competing clubs, and the price point the concept can hold. Cost should break out construction, equipment and pre opening marketing so a lender can see what the extra dollars buy. Because every loss in this cohort landed inside five years, debt service coverage must hold through the first years of membership growth. Where the borrower owns the building, the appraisal has to consider how readily the space converts to another use.

A note on the data: the fitness class has no limitation line, so the only caution is the general one, that each industry code is the borrower's own report.