SBA 7(a) Fitness Center Feasibility Study in Indiana

Half franchise, half independent

Indiana's fitness centers split their SBA 7(a) record evenly: franchised units account for 50.0% of the 248 loans approved since FY2017, which together total $87.4 million. That balance is the feature separating this cell from the class across both programs, and from Vermont or other states where independents carry the file. Fitness holds fourth place among Indiana's 39 asset classes, and the state ranks 18 for the number of such loans.

The ticket

The median loan of $225,400 is 0.92x the nationwide 7(a) median for fitness, so Indiana is near the national line. The central loans run from $63,075 to $396,250. Smaller amounts fit a studio or a franchised gym in leased space; the upper part covers a larger club with equipment and improvements. Annual volume has been steady, at 21 to 31 loans in most years, but FY2026 shows only 14.

Holders and geography

The Huntington National Bank is listed on 42 loans, ahead of KeyBank National Association at 14 and Old National Bank and Peoples Bank 12 each. SBA lists whoever holds a loan now, so these numbers describe holdings and not underwriting. Hamilton County leads with 61 loans, clearly ahead of Marion with 35, Lake with 20, and Allen with 12, and Hendricks and Howard with 11 each. The suburbs north of Indianapolis therefore carry more of this lending than the city itself.

The loss record

Cancellation was at least 12.0% of approvals between FY2017 and FY2024, and 13.9% counting loans not yet disbursed. Of the 114 loans funded in FY2017 through FY2021, 7.9% have been charged off so far and 4.4% were charged off within five years. Open loans can still push these floors higher, and a gym's income rests on discretionary household spending.

What an Indiana fitness study has to test

Membership is everything. The study should estimate the households within a short drive who will pay monthly dues, the existing gyms and boutique studios, and the join and cancel rates a new club can expect. It must show pricing tiers, the ramp of members in the first year and how many are needed to cover rent, payroll and debt service. Equipment is costly and wears out, so replacement reserves belong in the model. If the project is a franchise, the franchisor's disclosure and royalty terms must be built in, and the model should be run through a slow opening and a rival gym opening nearby.