Physical Therapy Clinic Feasibility Study in Minnesota

Smaller loans, fewer of them

Minnesota's physical therapy lending is lighter than the national class in both volume and size. SBA approved 61 loans from FY2017 to FY2026, worth $16.7 million, and the median of $120,000 is 0.80x the class median across the country. A location quotient of 0.61x means therapy clinics make up a smaller part of Minnesota approvals than of approvals nationwide, and the class ranks 20 of 39 in the state while the state stands 21 of 54 on volume. Nothing in the record marks the cell out on any one measure.

A wide band of loan sizes

The central half of loans begins at $31,000 and ends at $400,000, a wide spread. The 7(a) programme accounted for 54 of the loans and 504 for 7. Franchises appear in 6.6%. U.S. Bank, National Association is first with 10 loans worth $2.0 million, with 5 loans apiece at Old National Bank ($1.6 million) and The Huntington National Bank ($1.3 million). Hennepin County has 15 loans, Dakota 8, Washington 7 and Ramsey 6. Approvals peaked at 12 loans and $4.7 million in FY2025 and dropped to 4 loans and $775,000 in the complete year FY2026.

Cancellation floor and unreported losses

Approvals between FY2017 and FY2024 show a cancellation floor of 6.7%, equal to the ceiling. Losses cannot be quantified here. The charge-off cohort is under 30 loans, a size at which Loan Analytics chooses to print no rate; SBA has no such rule; no rate appears and nothing here suggests there were no charge-offs.

What a Minnesota clinic study should show

A study should ask whether a clinic can fill its schedule in a market where the class is under-represented: referral sources, employers and payers within reach of the proposed site. The wide loan range means the study must be explicit about which kind of deal it is, startup, acquisition or expansion, since each has a different cost base and a different appraisal. Test the budget against a median near $120,000, hire therapists on a realistic schedule, state the payer mix the clinic expects and the days it needs to fill its schedule, and show debt service coverage if visits per day rise slowly. This record does not explain the lower location quotient, so the study has to bring its own local payer and referral evidence rather than assuming a reason.