SBA 7(a) Fitness Center Feasibility Study in Oregon

Portland metro, mid-sized gyms

Oregon's fitness center loans are chiefly a Portland-area story. Across FY2017 to FY2026, 130 approvals worth $57.9 million went to gyms and studios in the state through the 7(a) program, putting Oregon at 26 among states for the class; inside Oregon the category stands 5 of 39. The median of $199,550 equals 0.81x of the nationwide figure, and the loans span a very wide band, with the inner half from $50,000 to $499,250. More than a third of loans, 36.2%, carry a franchise flag, a meaningful share given how many fitness concepts license their name.

Counties and holders

Multnomah County leads with 29 loans, Washington follows with 21, Clackamas 19, and Deschutes records 15. Lane has 11 and Marion 9. Columbia Bank holds the most loans, 18, though just $948,000 in dollars, which points to very small tickets. U.S. Bank, National Association has 13 loans and $7.3 million, KeyBank National Association has 12 and $8.1 million; The Huntington National Bank has 11 loans and $2.2 million; Wells Fargo Bank National Association matches KeyBank at 12 loans, with $4.2 million. All holder entries are SBA's own records.

Failure and cancellation floors

Cancellation took at least 14.0% of approvals through FY2024, and the stricter count lands on the same figure. In the 46-loan cohort that funded early in the period, 4.3% are written off, a rate that is identical at the five-year mark, so every loss so far came early. These floors are minimums, since open loans may still default, and a lender should look at the early timing as a warning about first-year cash flow.

Testing a fitness concept in Oregon

A feasibility study for a gym has to show that memberships will cover a heavy fixed-cost base. Begin with the catchment: homes within a short drive, competing studios and big-box clubs, and the segment the concept chases, whether boutique classes or low-price open access. Revenue per member and churn matter more than headline sign-ups, so the forecast should show a monthly attrition assumption and a ramp that reaches break-even. Lease commitments, equipment financing and the build-out of locker rooms are the main uses of proceeds. Because losses here came early, the study should hold enough cash for the slow opening months, and debt service coverage must survive a membership shortfall. Franchise fees and required remodels, where they apply, should be in the budget.