SBA 7(a) Assisted Living Feasibility Study in Colorado

Mid-sized homes, light local presence

Homes for older adults in Colorado that lack on-site nursing took SBA 7(a) loans totaling $60.7 million over 51 approvals from FY2017 to FY2026. The median, $787,000, is 1.05x of the national benchmark; half of loans run from $519,500 to $1.5 million. Colorado is 12 nationally by count, yet care homes sit only 18 of 39 on the home-state ranking, and franchise brands appear in 7.8% of the loans. The profile is a single-owner facility, bought or built, with a mortgage-sized loan.

Lenders and Colorado counties

The table names two holders: 8 loans worth $6.0 million for Wells Fargo Bank National Association, and 7 worth $8.0 million for Bank of Hope, so the second averages a larger loan. By county, Jefferson has 14 loans, Arapahoe has 10, and Denver, Mesa and Douglas follow at 4, 4 and 3. FY2017 produced the largest year in the series, 8 loans and $10.5 million, while later years were thinner, such as 2 loans in FY2020 and 2 in FY2026.

Outcomes and the missing rate

Cancellation sits at 7.3%, the same with undisbursed loans counted. That is low beside most other classes in this set. A charge-off figure cannot be given: the funded cohort in the early years is below 30 loans, so the rate is withheld rather than zero.

What the code leaves out

A memory care wing finds no line of its own in the class, and homes that staff nurses are filed in two other health classes. A Colorado project with a locked memory wing or a skilled component is only partly described here.

What the Colorado study must establish

Demand has to be built from Colorado submarkets: older residents, the incomes that fund private-pay rent, and how many licensed beds compete within a drive. Altitude, mountain towns and the Front Range differ sharply, so a regional average will not serve. The model should show rate by unit type, a staged lease-up, and the staffing needed at each census level. Because lenders look at coverage at stabilization and in a weaker case, the study should present both. If the request is close to the $787,000 median the appraisal can be argued from income per bed, while a request well above it needs a clear story for the premium.