SBA 504 Behavioral Health Feasibility Study in California

The California SBA 504 behavioral health book in detail

SBA's files show 34 approvals under 504 for behavioral health projects in California between FY2017 to FY2026, worth $38.9 million. Counting approvals, California takes position 1 for behavioral health in this program, and inside California the class holds 23 of 39. Median loan: $875,500. Compared with behavioral health (SBA 504) lending nationwide, California runs at 1.41x on that median, a heavier ticket size. The middle half of California loans fall from $621,750 to $1.5 million. 0.00% of these California loans went to franchised businesses. None of the behavioral health metrics across the 34 loans departs far from California's all-class record or from the class nationally; for California, look to the named institutions and local spread.

Lenders, counties and timing in California

Among California certified development companies, the top names by loans approved are The Mortgage Capital Development Corporation at $10.0 million across 7 loans, CDC Small Business Finance Corp. at $4.0 million across 6 loans and California Statewide Certified Development Corporation at $8.0 million across 5 loans. Treat the 7 loans and $10.0 million for The Mortgage Capital Development Corporation with care: SBA lists each California loan's present holder, so the rows above describe who holds these loans today. California's behavioral health loans sort by county as follows: Los Angeles with 13, Orange with 5, San Diego with 3 and Kern with 2. By year, California behavioral health approvals peaked at 6 loans, worth $4.3 million, in FY2024, with FY2026 at 3 loans and $4.2 million; the series began in FY2017 at 2.

California: outcomes, read as minimums for behavioral health

No figure appears for the California behavioral health cancellation rate, because the FY2017 to FY2024 cohort is under 30 loans; treat the California gap as undisclosed, which is different from no cancellations. Among California loans in this class that disbursed from FY2017 to FY2021, charge-offs rest on a cohort too thin to publish; no California figure is given, and none should be read as a zero. Institutions must treat these California rates, drawn from 34 loans, as minimums, not as settled results. One coding limit shapes California behavioral health totals: talk-therapy practices and addiction treatment share each of the NAICS codes behind this class, so California's count mixes the two.

What a California behavioral health study must prove

In California, two loans sit behind each of the 34 504 behavioral health projects: one from a California certified development company, one from a separate California lender. A behavioral health study must demonstrate that the acquired site and its improvements can carry both loans, alongside California cash from the borrower. Need for behavioral health care in California is best tested through who pays, referral and licensing capacity. Tenant improvement for behavioral health space carries licensing-driven requirements, such as private rooms, and the California budget must price that. Debt service coverage must run at $875,500 and again at $1.5 million, plus a downside scenario, so a California lender can see exactly where the margin narrows. The study keeps property value apart from going-concern value, which a behavioral health appraisal should also distinguish. A borrower who is approaching The Mortgage Capital Development Corporation can treat its 7 loans as background alone, since SBA's totals describe a book and say nothing of terms.

Daniel Smith, MAI, signs the California behavioral health study: the $38.9 million authorized before is orientation, while the behavioral health study itself tests the project questions; California approval is never promised here.