SBA 7(a) Hospital Feasibility Study in California

Scale of California hospital lending

SBA lists 26 SBA 7(a) loans to hospitals in California between FY2017 and FY2026, with $19.4 million in gross dollars approved in California. $160,000 is the California median, and the middle half of hospitals loans stretches from $28,300 to $496,550. Against the national hospitals median under SBA 7(a), the California median stands at 0.80x, which puts California below the national figure for hospitals. California's franchise share is 0.00%; owners of California hospitals operate independently.

Rank 1 among states and 30 of 39 among California classes: that is how California hospitals stand under SBA 7(a). California hospitals reached their top year in FY2021 with 5 loans and $9.2 million, and FY2026 lists 4 loans worth $2.4 million. California leads all states in 7(a) hospital loans by count, though the class ranks low among California's classes, and the median loan is small for a hospital.

No holder table exists for 26 California loans, so a hospital borrower asks lenders in California directly. By area, Los Angeles leads with 12 loans, then San Diego with 3 and Fresno with 2. Lower on the list are Orange 2, Alameda 1 and Riverside 1.

Reading the outcome floors for California hospitals

Since California shows only 26 loans, the California cancellation cohort is too small, and also the funded California group is too small for losses. Neither blank is a zero. California's hospital counts take in critical access hospitals, which have no code of their own. SBA lending alone is counted in California. Read these California figures as history for hospitals; whether a California project is financed depends on that project alone in California.

What a California hospital study must prove

A hospital study needs the service area near Los Angeles, the beds and specialties, and admitting physicians. Public and private payers drive revenue, so reflect payer mix and slow collections. Nurses and specialists are the largest cost and the biggest risk to the opening date. Licensing rules can delay a project, so test the timeline first. A loan near $160,000 says little about a hospital's capital needs, and an appraiser values the facility on going-concern earnings. Emergency volume and transfer agreements shape the census.