SBA 504 Assisted Living Feasibility Study in Florida

The highest cancellation floor in this group

Florida assisted living homes without nursing hold 65 SBA 504 loans and $115.1 million in gross dollars; Florida is 2nd among states for the pairing, while assisted living ranks 10 of 39 at home. Two metrics set the cell apart. Cancellation is extreme: 31.8% is the floor and 34.1% the ceiling for approvals that never funded. Size is the other mark: the $1.3 million median is 1.58x the national 504 figure, with most loans between $651,000 and $2.4 million. Franchising reaches only 4.6% of loans.

Of the two, Florida First Capital Finance Corporation, Inc. is larger at 34 loans, and Florida Business Development Corporation has 27, so the two account for most of the table. The figures are SBA's current-holder counts and carry no judgment of either company. Miami-Dade has 10 loans and Broward 7, followed by Pinellas and Sarasota with 5, and Hillsborough, Okaloosa, Pasco and Volusia with 4. Volume was 10 loans and $22.1 million in FY2025 and 11 loans and $23.4 million in FY2026, against only 3 loans in FY2017, FY2022 and FY2024.

Why cancellation matters here

A loan that is approved and then cancelled has not lost money, but a rate this high signals that projects fail between approval and closing: a site that cannot be zoned or licensed, construction costs that move, or a buyer who walks. In a 504 loan the building is the collateral, so a lender will look for evidence that entitlements and a licensing path are secure. The funded cohort is too small for a charged-off rate to be published, and the blank is not a zero.

Coding limits and what a Florida study must prove

The class covers homes without on-site nursing only; memory care has no code, and projects that provide nursing are filed under skilled nursing or continuing care, which are worth reading alongside. A Florida study must show the licence category and bed count, demand from seniors who can pay privately, rival homes within a realistic distance, and staffing cost by acuity. Because 504 funds the real estate, compare cost with appraised value and ask who else could operate the building. Include permitting and construction schedules, and run coverage of both loan pieces on a slow lease-up. Insurance and storm-hardening costs belong in the budget.