SBA 7(a) Assisted Living Feasibility Study in Michigan

Michigan homes without on-site nursing

Michigan has 72 SBA 7(a) loans to assisted living homes without nursing, from FY2017 to FY2026, worth $50.7 million. The state is 7th by count, though the class is only 19th of 39 inside Michigan. The sharpest contrast with other care-home files is the ticket, a $444,250 median at 0.59x the class nationally, while the bulk of loans fall between $167,475 and $902,250. Franchising does not appear, at 0.00% of loans.

Concentrated in a few lenders and counties

Of the $50.7 million, $13.6 million sits with The Huntington National Bank across 22 loans, the largest share by far. Live Oak Banking Company has 8 for $7.1 million, and Team One CU has 5 for $3.0 million. Oakland County has 13 loans, Wayne 9, Eaton 8, Calhoun and Genesee 4 each, and Jackson, Lapeer and Saginaw 3 each. Eaton County's third place is unusual for a county of its size. The page's lender list reflects current holders in SBA's data.

Floors on a small cohort

Michigan's 31 early funded loans show a charge-off floor of 3.2% so far, matching the figure on a five-year clock. Cancellation after approval stands at 8.6% on both floor and ceiling. These are minimums, and the cohort is just large enough to publish. Approvals fell from 7 loans and $3.8 million in FY2017 to 3 and $1.8 million in FY2021, then 3 loans and $4.6 million in FY2026, which shows fewer but larger loans.

What the study must test

A Michigan senior housing study has to start with the demand for the beds: the older population in the county, the home's price compared with the seniors' ability to pay privately, and the existing homes within a reasonable distance. It should test staffing, licensing and the time to fill the beds, along with the cost of a conversion or purchase compared with a loan near $444,250. On coding, SBA gives a code only to homes lacking on-site nursing, has none for memory care, and counts homes with nursing in two other classes, so a mixed-acuity project should also be read against those pages. The appraisal values the home on its beds and income.