SBA 7(a) Fitness Center Feasibility Study in Ohio

Small checks for gyms

Ohio's SBA 7(a) fitness center record is a book of 517 loans, $158.3 million, for FY2017 to FY2026, and what sets it apart is how little each loan is. A median of $125,000 comes to 0.51x of what 7(a) fitness loans reach nationally, and the central half begins at $40,500 and ends at $375,000. Those are studio, equipment and conversion loans far more than purpose-built club construction. Fitness ranks 3 of 39 among Ohio classes, and Ohio is 5 among states for the program in this class. Brand affiliation covers 37.3% of loans.

One lender dwarfs the rest

A single bank, The Huntington National Bank, holds 270 loans carrying $59.6 million. Behind it come KeyBank National Association (30 loans, $12.5 million), U.S. Bank, National Association (19, $8.8 million), JPMorgan Chase Bank, National Association at 12 and $3.4 million, and Telhio Credit Union Inc at 11 and $3.4 million. SBA names the current holder, and the page says so: this is where loans sit, not a statement of policy. Cuyahoga County has 91 loans, Franklin 65, Hamilton 48, Summit 35 and Butler 32.

Floors for a risky class

Among FY2017 to FY2024 approvals, at least 12.5% were cancelled, and the ceiling is 16.1% if loans awaiting disbursement are included, a wide spread that shows how many approvals never reach closing. In the cohort of 209 loans from FY2017 to FY2021, 5.7% are charged off to date and 1.4% inside the first five years; loans still open can add to both.

Annual pattern

Approvals ran at 65 loans in FY2017, fell to 37 in FY2020, and have hovered around 50 since, though FY2026 dollars reached $25.6 million.

Testing an Ohio fitness plan

For an Ohio gym, the study should test membership potential in the catchment, the churn that follows an initial promotion, and what share of members must stay to cover the lease and loan payment. It should compare the equipment budget against the modest loans seen here, treat the lease term as a limit on how long the business can plan, and show coverage when a competing chain opens nearby. Equipment loses value fast and gives a lender little collateral comfort, which is why the personal credit and the lease matter. If the concept is franchised, fees go in the model.