Medical Office Feasibility Study in Georgia

Physician practices are a bigger part of SBA lending in Georgia than in the country overall: the location quotient for medical offices is 1.31x, and inside Georgia the class sits 8 of 39. Georgia approved 298 loans to physician offices from FY2017 to FY2026, for $227.8 million, 6 of 53 among states. The median loan is $411,500, or 1.20x the class's median nationally; the middle half covers $200,000 to $999,750. Measured against both Georgia's overall record and physician offices nationally, neither the median nor the outcome floors clears our distinctness margin, so the case here rests on weight, lenders and trend.

A spread out lender field

No lender dominates Georgia physician lending. United Community Bank leads 7(a) with 18 loans for $11.2 million, followed closely by Wells Fargo Bank National Association (17), Truist Bank (15 loans, $8.6 million), Newtek Bank, National Association (15) and Live Oak Banking Company (11 loans, $12.3 million). On the 504 side, Small Business Access Partners, Inc. has 16 loans for $16.1 million and Florida Business Development Corporation 10 for $7.8 million, ahead of Capital Partners Certified Development Company (8) and CSRA Local Development Corporation (5). The mix is 254 loans under 7(a) and 44 under 504, and the franchise share is just 0.67%. Fulton County leads with 72 loans, then Gwinnett (37), DeKalb (26) and Cobb (24).

Ordinary rates, a shifting trend

Georgia's physician loans have behaved much like the class elsewhere. Cancellation after approval was 12.1% for FY2017 to FY2024 approvals, or 13.5% counting undisbursed loans. Of 113 loans disbursed in FY2017 to FY2021, 3.5% have been charged off to date and 1.8% within five years, close to both the Georgia floor and the class nationally, and still floors. The trend is uneven: volume dropped to 16 loans for $9.2 million in FY2022, rose to 41 in FY2024 and 44 in FY2025, yet FY2025 dollars came to only $17.5 million, so that year's loans ran smaller.

What a Georgia medical office study must test

A study for a physician practice has to start from the doctor's production and referral base, not the building. Demand means the patients a specialty can draw in the service area, the payer mix and the practices and hospital owned clinics already competing for them. Cost should separate tenant improvements, imaging or procedure equipment, and working capital for the months before insurers pay. Coverage of the debt belongs on collections at a realistic ramp, with the physician's compensation taken out first. If a 504 loan buys a medical office building, the appraisal has to value it as a multi tenant property, not only as the borrower's practice.

The physician office class has no limitation line; its loans follow the industry code the borrower supplied, and all rates shown are floors.