SBA 7(a) Fitness Center Feasibility Study in Colorado

Colorado gyms: franchised, with charge-offs to weigh

Inside Colorado's lending mix, gyms stand 4 of 39 for SBA 7(a). Between FY2017 and FY2026 the program approved 351 gym loans worth $167.8 million, putting Colorado 11 among states. Franchise brands account for 57.5% of loans, and the $297,900 median is 1.21x of the nationwide 7(a) median for gyms; half the loans lie between $100,000 and $567,000. The charge-off figures are the sharp edge: of 152 loans in the funded cohort, 12.5% or more have been charged off, and 7.9% within five years of approval.

Cancellations and volume

Cancelled approvals through FY2024 stand at 13.1% at minimum, or 14.6% counting loans still undisbursed. Annual approvals were 39 in FY2017, dipped to 19 in FY2022 with only $6.8 million, rose to 59 in FY2025 and reached $23.7 million from 32 loans in FY2026, the final year of the record. No metric on this page is distinctive for Colorado gyms.

Lenders and counties

Leading the Colorado list is The Huntington National Bank (68 loans, $17.5 million), then Wells Fargo Bank National Association (34, $10.8 million), U.S. Bank, National Association 23 worth $6.7 million, and Citizens Bank and Stearns Bank National Association 10 each. SBA reports each of these lenders as the present holder of the loans listed. Denver County has 64 loans, Douglas 46, El Paso and Jefferson 42 each, Arapahoe 36 and Boulder 33, with Larimer at 28, so the loans are concentrated in a handful of counties.

Testing a Colorado fitness project

A study should size the membership pool in the trade area, count the boutique studios and clubs that split the market, and show how many members the site needs to cover its costs. It should price the franchise fee schedule, the equipment package and the lease against that median near $297,900, then model retention month by month. Seasonal swings in attendance should be tested rather than assumed away. With a charge-off floor of 12.5% in the funded cohort, debt service coverage should hold at a membership level well under plan, and the report should state what happens if an anchor tenant next door leaves. Lease renewal options and the cost of relocating heavy equipment should be shown, as should the working capital held back for the months before the first members are signed.