SBA 504 Fitness Center Feasibility Study in New York

A thin New York record scattered across the state

Within New York's 504 lending fitness centers are a minor class, though they rank 8 of 39 among the classes New York borrowers use. That makes the class a niche, and a borrower should expect fewer local precedents than in larger classes. For FY2017 to FY2026 New York shows 28 loans and $27.2 million, placing it 11 among states. The median of $590,500 is 0.75x what the program writes nationally, with the middle of the range at $322,750 to $1.4 million. Franchise share is 14.3%. Erie, Saratoga and Suffolk counties have 4 loans each, Albany and Nassau 3, Warren 2, and single loans appear in Broome, Clinton, Dutchess and Kings.

No lender table, an uneven calendar

The lender table for this cell is empty, so the page cannot say which development companies hold New York gym loans. The calendar is lopsided: one loan a year from FY2017 through FY2020, 5 loans and $5.8 million in FY2022, a single $943,000 loan in FY2023, and a peak of 7 loans and $10.0 million in FY2024. FY2025 shows 4 loans and $3.2 million, and FY2026 shows 5 loans and $3.9 million.

Missing rates

Thin data leave New York gyms without a cancellation or charge-off percentage, and that gap is not zero. The page therefore cannot say how many such borrowers later ran into trouble. A blank in that spot is not a zero.

Real estate and members in a New York gym file

Because 504 money buys the building, the study must cover the real estate as carefully as the club. It should show the zoning, parking, ceiling heights and floor loads the concept needs, and the purchase or construction cost compared with sales of similar buildings. Membership demand comes from households and employers within a short travel time, the existing gyms and studios, and the price points the market bears. Retention is critical because members leave, and joining fees should not be treated as recurring revenue. Debt service should be tested against a slower membership ramp, and a lender will want the appraiser to say what the building would sell for if the gym failed. Upstate and downstate markets differ sharply in rents and construction costs. The study should state plainly whether the concept is a large-format gym, a boutique studio or a specialist facility, because each draws on different population density and pricing.