SBA 7(a) Flex Space Feasibility Study in Michigan

Size, rank and loan sizes of Michigan flex space loans under SBA 7(a)

SBA's files show 37 approvals under 7(a) for flex space projects in Michigan between FY2017 and FY2026, worth $29.9 million. Lining the states up of flex space (SBA 7(a)) loan counts, Michigan lands at 14; inside Michigan itself, this class holds 21 of 39 across the asset classes. The median flex space loan in Michigan is $415,000; against the national midpoint for flex space loans under SBA 7(a), 0.70x is the ratio, so Michigan loans are smaller than the national median. From $232,700 up to $1.2 million lies half of the approvals in Michigan. Franchised borrowers account for 18.9% of the 37 loans. At $415,000, the Michigan median is simply the typical loan; for Michigan, use the named lenders and local spread.

Where the Michigan loans sit

Among Michigan lenders, the top names here are The Huntington National Bank with 9 loans worth $3.6 million. The Michigan flex space table tracks whoever holds each Michigan loan; that table reports holders only. Michigan's flex space loans sort by county as follows: Wayne with 10, Oakland with 5, Kent with 4 and Genesee with 3. Year by year in Michigan, approvals peaked at 10 loans, worth $5.1 million, in FY2022. The first year, FY2017, had 2 loans, while the last year, FY2026, shows 0 loans and $0.

Michigan: floors for cancellation and loss, with one flex space coding caveat

Of the FY2017 to FY2024 Michigan flex space approvals, at least 24.3% were cancelled before being fully used; treating still-open loans as cancelled gives the same 24.3%. Too few of the 37 flex space loans funded in Michigan between FY2017 and FY2021 to support a flex space charge-off rate, and Loan Analytics withholds it here; the blank does not mean zero losses. Readers need to treat these Michigan rates, drawn from 37 loans, as minimums, not as final outcomes. The class carries a coding limit worth noting in Michigan: the landlord code is shared: flex, office, shopping and event hall leasing sit together. Under SBA's rule, lessor businesses are mostly passive and ineligible, so loans under this lessor code nearly stop from FY2024 and the later years in Michigan hold few loans.

Questions a flex space (SBA 7(a)) study in Michigan has to pass

Under 7(a), a Michigan flex space request, one of 37, is judged by the Michigan participating lender, whose guaranteed flex space loan rests on Michigan cash flow and collateral the Michigan study has to document. A Michigan study should test the demand of small businesses and trades for flex space, set against nearby existing flex buildings. Interior improvement allowances, marketing commissions and carry time belong in the Michigan flex space budget. Stress the Michigan flex space numbers at the $415,000 median plus at $1.2 million: coverage that survives only in a best year is not enough. An appraisal must value flex space on stabilised fill and market rents. A borrower who is approaching The Huntington National Bank can use its 9 loans here as context only: SBA's totals describe loans, not its requirements.

Loan Analytics presents the 37 Michigan approvals as SBA's Michigan records, not a forecast for any flex space project; a flex space study signed by Daniel Smith, MAI, tests Michigan conditions directly, and Michigan approvals promise nothing.