SBA 504 Medical Office Feasibility Study in Georgia

Georgia physicians' offices and their development companies

Georgia physicians' offices took 44 loans under SBA 504 in the ten fiscal years, for $38.9 million in gross dollars. The state ranks 6 for the class by loan count, and the class stands at 8 of 39 within Georgia. A median of $714,000 is 1.06x the nationwide 504 figure, so Georgia practices borrow just above the norm, and loans around the middle of the book fall from $343,500 to $1.3 million. There is no franchise activity: the share is 0.00%. No single ratio clears our distinctness margin, so the cell is described by rank, by lender roster and by what is withheld.

A varied roster of holders

The lender table credits Small Business Access Partners, Inc. with 16 loans and $16.1 million, Florida Business Development Corporation with 10 loans and $7.8 million, Capital Partners Certified Development Company at 8 loans and $6.3 million, and CSRA Local Development Corporation with 5 loans and $5.2 million, all as SBA records current holders. Fulton County has 10 loans and DeKalb 5, Gwinnett 3, with Chatham, Cobb, Columbia, Fayette, Houston, Paulding and Walton at 2 each. Approvals rose to 9 loans and $5.5 million in FY2025 and 6 loans and $8.0 million in FY2026, after only 1 loan of $278,000 in FY2019.

Georgia's 504 doctors' offices carry no printed outcome rate of either kind, cancellation or charge-off. Too few approvals and too few early funded loans exist to support either. We offer no number for them and do not describe them as zero; a lender wanting outcome evidence must look to the Georgia medical class across both programs or to the national 504 class.

What a Georgia study must test

Under 504, the loan finances a fixed asset, so the study begins with the building or the land: acquisition or construction cost, the practice's share of the space, and what tenants might take the rest. A physician group occupying its own property should show how many providers the site supports, and how the patient base grows to fill them. Referral sources, hospital affiliation and payer contracts determine volume; reimbursement should be modelled conservatively. A development company will want to see that the borrower can carry both the senior loan and the company's debenture, so coverage should be shown on combined payments. The appraisal will treat the building as a medical facility, with value depending on whether another practice could move in, and the study should show that adaptability, from plumbing to parking.