SBA 7(a) Medical Office Feasibility Study in Idaho

Idaho physician offices: small loans and high cancellation

Medical offices come 7 of 39 in Idaho's class ranking, and by count of 7(a) physician-office loans Idaho stands 21 among states. SBA approved 74 loans between FY2017 and FY2026, worth $32.1 million, at a median of $170,850, or 0.68x the national median for the class. Most Idaho loans lie between $100,000 and $469,250. No loan is franchised (0.00%). Two figures stand out in the record: a cancellation rate of at least 18.2% (the ceiling is the same), and charge-offs of 6.5% to date against 3.2% inside five years among the 31 loans of the early funded cohort.

Idaho holders and counties

Glacier Bank carries 17 loans valued at $4.0 million. Zions Bancorporation, National Association holds 9 for $1.6 million, D. L. Evans Bank 7 for $822,000 and Wells Fargo Bank National Association 5 for $3.8 million, a much larger average. Those are the holders SBA records now. Ada County has 26 loans, Kootenai 15, Bonneville 9, Twin Falls 5 and Madison 4. Dollars were $600,200 in FY2018, $7.9 million in FY2019 and $4.5 million in FY2026.

What the loss figures say

The five-year charge-off rate of 3.2% and the to-date rate of 6.5% differ, so some losses arrived late in the loan's life. With only 31 loans in the cohort, one or two failures move the percentage a great deal, while loans still open could add to it. Both figures are floors.

A study for an Idaho physician practice

An 18.2% cancellation floor points to projects that do not reach funding, so the study should show what is already in hand: a signed lease or purchase, build-out bids, credentialing and payer enrollment. Practice revenue starts only when a provider can bill, so the timeline from opening to the first insurance payments must be modelled, with working capital to bridge it. Demand analysis should count the patients each provider can see, the payers accepted and referral relationships in the actual service area. Because loans run below the national median, a request for an equipment package or a practice purchase should itemise the assets. The payment should be covered when the lead provider takes leave or leaves. Any real estate appraisal must rest on medical-space rents and the cost of specialised improvements.