SBA 7(a) Assisted Living Feasibility Study in Georgia

Assisted living without nursing

Georgia assisted living homes without on-site nursing hold 66 SBA 7(a) loans, $102.4 million in gross dollars; Georgia stands 8th among states for the pairing, with assisted living holding the 19 of 39 slot at home. A median of $899,000 is 1.19x the national one, and loans range mostly from $456,500 to $2.2 million. Franchises account for 9.1% of loans. These are sizable tickets for a small-business loan program.

Craft Bank holds 7 loans, while Live Oak Banking Company and Oconee State Bank hold 6 each. The listing reflects who SBA records as holder and describes nothing of how a bank lends. Cobb County leads with 13 loans, ahead of Rockdale with 6, Cherokee and Hall with 5, and Fulton, Pickens and Walton with 3. Fulton's tally of 3 is small next to Cobb's 13. Volume ran from 10 loans and $19.4 million in FY2020 to only 3 loans in FY2023, then 7 loans and $8.9 million in FY2025.

Floors

Cancellations floor out at 12.7% and the ceiling is identical. In the funded cohort of 34 loans, the charge-off floor is 2.9% to date and 0.00% by year five. Both are minimums given that open loans may still fail. The pattern is no charge-offs in the first five years of approval and some after that. No single measure on this page is singled out as distinctive.

Coding limits and what a Georgia study must prove

The industry code isolates homes without on-site nursing; memory care gets no code of its own, and a home with nursing falls into the skilled nursing or continuing care classes, so mixed-acuity plans deserve a look at those pages. A Georgia study must define licensed beds and the care level, then test demand among seniors who can pay privately, nearby supply, and the pace of fill after opening. Staffing costs, which rise with acuity, deserve a line-by-line model. Show construction or purchase cost against appraised value, and run coverage on a slow lease-up. The appraisal turns on licensed beds and what they earn, and the study should show occupancy, the monthly fee per resident and the cost of care side by side. It should also state plainly which care level the project serves and what happens to the building's value if the license changes hands. Expect the reviewer to ask for a base case, a slow case and a failure case, each tied to figures the borrower can document.