SBA 7(a) Fitness Center Feasibility Study in Rhode Island

A franchise-majority gym market

More than half of Rhode Island's fitness loans, 53.8%, are franchised, a share that distinguishes Rhode Island from the national gym record and from most of its own classes. The 39 loans total $10.1 million. Loans centre on $141,000, which is 0.57x what fitness centers get at the midpoint nationally, and the lower and upper quarters begin at $53,000 and $262,500. Rhode Island ranks 42 among states by count, and fitness center holds place 5 of 39 within the state, a higher standing at home than the count suggests. The gap says that gyms are a common small-business loan in a state that makes few loans of any kind.

One lender in the table, one county ahead

Eastern Bank is the only holder listed, with 5 loans and $566,000, as SBA now reports. Providence County has 18 loans, nearly half the cell; Bristol and Newport have 6 each, Kent 5 and Washington 4. Approvals tapered in the early 2020s, with 1 loan in FY2020 and 1 in FY2022, then recovered to 5 in FY2025 and 6 in FY2026, which brought $1.8 million.

Unpublished rates

Neither cancellation nor charge-off is published for Rhode Island fitness centers, because the cohorts fell short of SBA's minimum. We give no number for either and do not read the silence as a clean record. No coding limit and no lessor note affect this cell, so the figures can be read at face value, floors included.

What a Rhode Island gym study has to show

With over half of loans franchised, the study should begin by saying whether the center is a brand unit or an independent, and by costing the franchise: fees, required equipment and remodel cycles. The state is small and dense, so trade areas overlap; the study should map competing gyms within a short drive and show how many members the center needs to cover its payment. Revenue is dues, less attrition, so give a sign-up pace by month and a realistic churn. Coastal and student populations make the calendar seasonal, and the study should show the summer and winter profile. Build-out, equipment financing and lease term belong in a clear schedule. Coverage must hold under a slow ramp and under a case where a neighboring brand opens.