SBA 7(a) Fitness Center Feasibility Study in West Virginia

Small fitness loans in a small market

In West Virginia the fitness center class takes place 4 of 39 at home, yet only rank 41 against other states by count, which describes a small market where gyms are one of the more common small-business loans. The 40 loans total $11.6 million, with a midpoint of $128,150, a ratio of 0.52x to the nation's 7(a) gym midpoint, while the quartiles fall at $27,750 and $379,750. Franchising is high at 27.5% of loans.

Holders and counties

The Huntington National Bank holds 16 loans, but just $2.2 million, so the typical Huntington ticket is small. Peoples Bank holds 5 loans and $590,000. Those are present holders per SBA. Monongalia County, home to a university, has 9 loans; Cabell and Kanawha have 5 each, Jackson 4 and Jefferson and Lewis 3. The calendar is uneven: 9 loans in FY2017 and 8 in FY2018, none in FY2019 or FY2022, and 8 again in FY2026, with $3.0 million.

Withheld rates

For West Virginia gyms SBA publishes no cancellation figure and no figure for charge-offs, because each cohort falls below the loan count SBA requires. The page therefore offers no outcome floor at all, and the omission carries no meaning about safety. Any lender weighing a gym here must look to the borrower's own facts. The class has no coding limit.

What the West Virginia study must show

A gym sells memberships, so the study begins with the member base: population within a reasonable drive, the age profile, and the competing gyms and recreation centers, including those run by universities and hospitals. Revenue is members times dues, less attrition, and the study should state the sign-up pace, the dues level and the churn it expects, plus personal training and class income if any. A franchised unit has fixed fees and required equipment packages that must be costed. Build-out, equipment replacement cycles and the lease term should be set against the loan term. Coverage should be run with a slow membership ramp, since new gyms take months to fill. Membership revenue depends on retention, so show how the plan keeps members through winter and summer.