SBA 7(a) Fitness Center Feasibility Study in Nebraska

Small gyms, heavy on brands

Nebraska fitness centers took 72 SBA 7(a) loans and $17.7 million in gross dollars; the state stands 36th among states for the pairing, but gyms are the 3 of 39 class within Nebraska itself. The median loan is $131,000, only 0.53x the national median, and the typical range is $57,500 to $350,000. Half of all loans, 50.0%, are franchised. So the typical Nebraska gym loan is small and brand-heavy, closer to equipment and tenant improvements than to real estate.

Union Bank and Trust Company holds 13 loans, Northwest Bank 7 and First National Bank of Omaha 5. Those counts come straight from SBA's current-holder field, so they say where the paper lives, not how any lender thinks. Douglas County has 39 loans, more than half the class, Lancaster has 17 and Sarpy 9, while Hall has only 2 and Buffalo, Cedar, Madison, Otoe and Platte 1 each. The class is, in effect, a two-metro business. Volume rose to 11 loans in FY2019 and 10 loans in FY2024, with the largest dollar year in FY2019 at $3.2 million.

Cancellations and losses

The cancelled share has a floor of 8.9% with a matching ceiling. At 30 loans, the funded cohort sits right at the smallest size where SBA publishes a charge-off floor: 6.7% or more have been written off so far, and 3.3% by the fifth year. In so small a cohort a single loan shifts the percentage by a visible amount, and open loans can still fail, so treat these as minimums resting on thin evidence. None passed our distinctness margin.

What a Nebraska gym study must prove

Membership demand has to be shown for the trade area, with household counts, rival clubs and studios, and the prices members pay. Churn is the central risk, so the model should replace members who leave and cost the marketing needed to do so. If a franchise is involved, royalties, required equipment and any development schedule belong in the cost side. Leasehold improvements and equipment should be itemized against a small median loan. Because most of Nebraska's lending sits in two metro counties, a study for any other county must explain why the market can carry a club. Cover debt service in a slow first year.