SBA 7(a) Fitness Center Feasibility Study in Nevada

Two counties, heavy franchising and weak early survival

Nevada fitness centers are the third largest class in the state under SBA 7(a), and the cell recorded 110 loans worth $50.9 million between FY2017 and FY2026. The state ranks 27 among states, so what stands out is local weight, not national. Franchise brands appear on 53.6% of loans, which means a brand's concept and fee structure underlie most of the book. The $297,500 median is 1.21x the national level, and the central half of loans spans $97,750 to $523,100. Clark County has 63 loans and Washoe County 39, with Nye trailing at 4 and the remaining counties down at 1.

Holders

U.S. Bank, National Association appears as holder of 12 loans worth $4.7 million, Zions Bancorporation, National Association of 11 worth $2.5 million, and The Huntington National Bank of 10 worth $2.5 million. Another 9 loans worth $3.3 million sit with Newtek Bank, National Association, and a separate entity, Newtek Small Business Finance, LLC, holds 7 worth $3.0 million. Treat these as holder entries, not as claims about any lender's standards. Approvals peaked at 17 loans and $10.5 million in FY2017 and again at 22 loans and $9.6 million in FY2023, with only 4 in FY2020.

Outcome floors

At least 16.5% of approvals through FY2024 were cancelled, with the same 16.5% when undisbursed loans are counted. Among the 36 funded early loans, 11.1% show a charge-off to date and an identical 11.1% reached that point in the first five years, so losses came quickly. The cohort is small, and open loans mean the numbers can only rise.

For a Nevada fitness centre, the study has to test membership demand in a market that mixes residents, shift workers and visitors, and it must show competing clubs, boutique studios and low-cost chains within a realistic drive. Membership sales ramp, attrition and the share of members on monthly contracts determine revenue, and the study should model a slow pre-opening sales period. Build-out, equipment and the lease are large costs, so the lease term should be compared with the loan's life. Because early losses were comparatively high in this cell, the coverage case should assume weaker membership growth, and the appraisal should be consistent with a leasehold that can be assigned. If a franchise is involved, brand standards and fees must enter the budget.