SBA 504 Assisted Living Feasibility Study in Michigan

Small 504 homes in Michigan

Assisted living without nursing care under 504 in Michigan runs smaller than the nation: the midpoint of $450,000 is 0.56x the national 504 midpoint for the class, with the quartiles at $222,000 and $722,000. The 25 loans total $16.9 million. Michigan comes seventh on loan count, and Michigan puts the class at place 9 of 39. No loan is franchised, at 0.00%. These are small residential homes, not large campuses.

Where and when

Ionia County leads with 4 loans, Ingham and Midland have 3 each, and Bay, Macomb and Saginaw 2 each, so the lending is outside the Detroit core, in the mid-Michigan counties. Approvals were steady and modest: 5 loans in each of FY2018 and FY2021, none in FY2019, and 1 in FY2025. The holder column is empty, so no lender is named.

What the code leaves out

The industry code isolates homes without nurses on staff; memory care is nowhere coded, and nurse-staffed homes go to the skilled nursing classes. A Michigan project that mixes acuity levels belongs partly in those other pages. Neither the cancellation nor the charge-off percentage is available, since the cohorts are below SBA's minimum, so the page offers no outcome floor.

What a Michigan assisted living study has to test

A small home lives on its census, so the study should show the number of licensed beds, the private-pay rate and the older population within reach with the means to pay. Count the competing homes and their occupancy. Staffing sets cost: give the caregiver ratios at each census level, wages, and the plan for hiring and for turnover. State licensing in Michigan governs the home, so the study should confirm the licence type and the inspection record of the operator. A 504 loan finances the building, so show the purchase or conversion cost, the code work needed for residential care, and the equity. Lease-up is slow, and a home can lose money for months; present the months to stabilised census and the cash carried. Coverage should be run with a lower census than planned. The appraisal must say what the property would bring as a house or a different residential use.