SBA 7(a) Fitness Center Feasibility Study in Washington

The median is the metric

Washington fitness center loans under SBA 7(a) have a median of $303,500, 1.23x the median for fitness nationally, and that ratio is what separates the cell from its parents. The program approved 312 loans from FY2017 to FY2026 worth $159.4 million in gross dollars, with half of them between $100,000 and $567,375. Washington ranks 15th by count, and fitness centers rank fourth among the 39 classes in Washington. Franchise units account for 44.2% of loans.

What happened to the loans

The funded cohort numbers 124 loans, of which 4.0% stand charged off and the early-years measure prints 4.0% too. Washington cancellations reach 10.2% at the least on approvals through FY2024, and 11.1% when loans never disbursed are included. Both are floors, drawn from a cohort that is still seasoning, so a lender should not treat them as a finished record.

Banks and counties

KeyBank National Association holds 54 loans worth $23.3 million. U.S. Bank, National Association holds 32 worth $16.9 million, Columbia Bank 17 worth $4.5 million, Washington Trust Bank 12 worth $8.7 million, and Wells Fargo Bank National Association 15 worth $8.1 million. The figures show present holders, not lending rules. King County has 129 loans, Pierce 43, followed by Snohomish with 30, Spokane with 28 and Clark with 21. Annual approvals climbed from 14 in FY2017 to 52 in FY2025.

Testing a Washington gym

Begin by stating what the loan will pay for: a build-out, equipment, a franchise or a studio already trading. Membership demand comes first, and the study should add a case for member churn: residents and workers within a short drive, particularly in the Puget Sound counties where the loans cluster, and the established clubs and studios whose members the new facility must draw away. Rent and wages should be set against dues and class revenue with a slow build in members, and the study should model what happens when a share of members leaves after the first year. Loan payment coverage must be shown with that shortfall. A lender and an appraiser will both look to earnings, so equipment value should not carry the case.