SBA 7(a) Fitness Center Feasibility Study in New York

In the 7(a) fitness center ranking New York is fourth, while the class itself holds 3 of 39 inside the state. The program approved 617 loans for $254.8 million between FY2017 and FY2026. Looking at 7(a) alone shows modest tickets: a $150,000 median, 0.61x the 7(a) national reading, and half of loans between $50,000 and $435,000. Franchised units are 37.0% of loans, so independents are the majority and gyms and studios divide between brands and owner-run clubs.

Banks and boroughs

Manufacturers and Traders Trust Company holds 102 loans worth $13.8 million. Next, TD Bank, National Association has 60 for $15.5 million, The Huntington National Bank 46 for $13.0 million, Newtek Bank, National Association 30 for $13.8 million, and JPMorgan Chase Bank, National Association 23 for $3.7 million. These are SBA's holder-of-record figures and imply nothing about lender policy. NEW YORK County has 74 loans and SUFFOLK 73, followed by WESTCHESTER 58, NASSAU 55 and KINGS 52, with ERIE at 44 and MONROE 40 upstate. Fitness lending is broad across the metropolitan region and the upstate cities.

A deep pandemic trough and a strong recovery

The yearly series shows how hard the class was hit: FY2021 had only 19 loans worth $11.5 million, against 82 in FY2018. Recovery followed, with 75 loans in FY2024, then 95 loans and $42.0 million in FY2025 and 84 loans and $47.9 million so far in FY2026. Roughly 12.8% or more of FY2017 to FY2024 approvals were cancelled, 14.6% on the wider count. In FY2017 to FY2021, 239 loans were disbursed; 8.8% at the least are charged off, 5.0% inside five years, a loss floor on the high side for recreation classes.

Testing a New York gym or studio

Membership businesses live on retention, so a study should model joining, attrition and new sign-ups from the neighborhood, not only peak-hour capacity. It should compare clubs and boutique studios within walking distance, check lease terms and build-out cost in a market where rent is the main fixed cost, and test how a long closure or slow ramp would drain cash. The charge-off floor argues for a downside case in which membership reaches only part of plan. An appraisal will usually value leasehold improvements and equipment, not real estate, so collateral is thin. SBA sets program terms; none are stated here.