SBA 7(a) Medical Office Feasibility Study in Arkansas

Small-ticket medical offices with Arvest in front

Medical offices in Arkansas borrowed $22.7 million under SBA 7(a) across 33 approvals from FY2017 to FY2026. The median of $166,500 stands at 0.66x of the class elsewhere, with the central half from $100,000 to $485,300, and no franchise brands appear at 0.00%. Arkansas is 37 by national count, with medical offices at 10 of 39 at home. One bank, Arvest Bank, is named holder of 9 loans worth $1.1 million.

Where and when

Benton and Pulaski counties each show 4 loans, Washington shows 3, and Baxter, Crittenden, Desha, Garland, Ouachita and Pike show 2 each, a broad spread for a small class. Two years carry most of the dollars: FY2018 with 4 loans and $7.4 million, and FY2026 with 5 loans and $9.2 million. FY2024 shows none.

Rates withheld

Arkansas has too few early loans for either outcome rate, so cancellation and charge-off are both withheld, and neither is a statement of zero. For a lender that means the cell records lending activity and nothing about outcome.

What an Arkansas medical office study must test

Rural and small-city markets shape medical practice economics. The study should identify the specialty, the physicians committed, and the population within reach, as well as the nearest hospital and competing groups. Payer mix, especially Medicaid and Medicare, determines revenue per visit, and the study should show how it was estimated. Physician recruitment and retention are hard in many Arkansas towns, so the plan needs signed commitments and a contingency for a vacancy. Loans near $166,500 commonly fund fit-out, equipment and practice acquisition rather than new buildings, and the study should itemize which. The appraisal of a medical building depends on rent that another practice could pay, and the study should provide it. Coverage must hold if a physician leaves, and the plan should name who covers call, how the staff is cross-trained and how long a recruitment search is assumed to take, since an empty exam room earns nothing while rent and loan payments continue. Telehealth and mobile services are possible supplements, but the study should not count them unless contracts exist. Telehealth and mobile services are possible supplements, but only contracts in hand should be counted toward revenue.