SBA 7(a) Behavioral Health Feasibility Study in Utah

What Utah shows for behavioral health (SBA 7(a)) lending

$49.4 million in gross dollars, spread over 37 loans in the 7(a) program for behavioral health projects in Utah, is what SBA approved in Utah from FY2017 to FY2026. Utah's behavioral health book under SBA 7(a) ranks 8 across the states by loan count, while behavioral health sits 16 of 39 within Utah's asset classes. Typical size: $911,400. Compared with SBA 7(a) behavioral health lending in the rest of the nation, Utah runs at 3.65x on the median, a heavier loan size. Half of all Utah approvals run from $228,000 to $1.9 million. Franchised borrowers account for 0.00% of the 37 loans. At $911,400, the median loan is the measure that separates Utah's behavioral health (SBA 7(a)) cell from both parent: behavioral health across both programs in Utah, and behavioral health (SBA 7(a)) lending nationally.

Where the Utah loans sit

By county, Salt Lake with 15, Wasatch with 5, Washington with 2 and Box Elder with 1 top the behavioral health approvals in Utah. On the calendar for Utah, approvals peaked at 7 loans, worth $9.9 million, in FY2018, with FY2026 at 5 loans and $14.4 million, while FY2017 began that run with 4 loans.

Utah: outcomes, read as minimums for behavioral health

Cancellations after approval run 6.7% at minimum for FY2017 to FY2024 Utah behavioral health approvals; add the loans still undisbursed and the bound becomes 10.0%. On Utah behavioral health loans disbursed from FY2017 to FY2021, charge-off history across the 37 loans is too thin to publish; we give no Utah number and imply no zero for behavioral health. Readers needs to treat these Utah rates, drawn from 37 loans, as floors, not as settled results. The class has a classification limit worth noting in Utah: both types of Utah operator, mental health and addiction, use one pair of codes, so no separation exists.

Questions a behavioral health (SBA 7(a)) study in Utah must answer

A 7(a) loan for an Utah behavioral health project, one of 37 on record, is made by a participating Utah lender, with SBA guaranteeing part of the behavioral health loan; the study must answer to that Utah lender's credit examination, from how the money is used to behavioral health repayment. An Utah behavioral health study has to identify who refers and which payers cover the service line, as patient volume tracks both. Build-out for behavioral health space carries regulatory-driven features, including private rooms, and the Utah cost plan must price them. Show the Utah behavioral health case at $911,400 first, next at $1.9 million, and one slower year beside each, as an Utah lender wants the study to show where payments stop be covered. Valuation of a behavioral health property should separate property value from going-concern value, and our work keeps apart.

Daniel Smith, MAI, signs the Utah behavioral health study: the $49.4 million approved before is a reference point, and the behavioral health study itself tests the local questions; Utah approval is never assured here.