Medical Office Feasibility Study in the Riverside-San Bernardino-Ontario, CA Metro Area

Physician offices in the Riverside-San Bernardino area

Medical office (physicians) lending in the Riverside-San Bernardino area comes to 170 loans and $153.7 million approved between FY2017 and FY2026. In the national ranking the area holds ninth place out of 488 for the class, and within its own mix the class is sixth of 39. A location quotient of 1.48x gives physician offices a weightier place in local lending than they hold nationwide. The median loan is $613,150, 1.79x the figure for the class nationwide, and the quartile edges are $280,125 and $1.2 million.

Program mix and holders

Of the 170 loans, 114 are 7(a) and 56 are 504. Five development companies are named: Business Finance Capital with 13 loans and $11.6 million, AMPAC Tri-State CDC, Inc. with 10 and $8.8 million, California Statewide Certified Development Corporation with 10 and $8.7 million, CDC Small Business Finance Corp. with 7 and $7.3 million, and Southland Economic Development Corporation with 5 and $4.2 million. On the 7(a) table the holders include JPMorgan Chase Bank, National Association (15 loans), Wells Fargo Bank National Association (14, $17.0 million), U.S. Bank, National Association (12, $16.0 million) and Bank of America, National Association (10). Treat the roster as SBA's tally of holders; it cannot tell a borrower what any given lender will ask.

Two counties, two bounds

Riverside County has 87 loans and San Bernardino County 83. Of approvals made FY2017 to FY2024, at least 11.6% were cancelled, and if loans never disbursed are counted too, the share climbs to 16.7%, a ceiling, so the true share lies between those marks. Volume has been modest: FY2017 brought 26 loans and $25.3 million, FY2019 only 9 loans, and FY2026 14 loans and $19.1 million.

What is missing and what to test

Loan Analytics withholds the franchise portion and the charge-off rate, since few loans lie behind them; blank does not mean nil. Loans reach this area when a project county can be name-matched to the July 2023 map of metro areas. Any physician-office study for the Riverside-San Bernardino area has to test physician supply relative to residents, payer mix, building cost or purchase price against the higher loan range, the scale of the practice, cash flow after debt service, and a valuation that distinguishes the medical building from the practice inside it.