SBA 7(a) Medical Office Feasibility Study in Kansas

Kansas physician offices carry a heavy cancellation record: 24.3% of approvals through FY2024 at a minimum, rising to 29.7% on the broader count. That is the cell's distinctive finding: roughly a quarter of approved loans never reached a closing, which tells a lender that projects in this class often fall apart before closing. The cell holds 42 loans and $18.8 million. The median loan is $226,550, 0.90x the nationwide 7(a) physician office median, and half of loans lie from $92,500 to $507,500.

Where the loans are

Kansas ranks 32 for the class when loans are counted nationally, and physician offices are 11 of 39 within the state. Johnson County has 18 loans and Sedgwick 16, together most of the cell; Leavenworth has 3, and Douglas, Lyon, Neosho, Riley and Wabaunsee 1 each. Franchise share is 4.8%. The one lender in the table is Emprise Bank, with 6 loans and $930,100; SBA's holder records give that tally, and it implies nothing about the bank's practices.

A lumpy history

Approvals ran 5, 3, 4 and 4 across FY2017 to FY2020, then 8 in FY2021 at $3.0 million, 2 in FY2022 at $93,900, and 7 in FY2023 at $4.4 million. FY2024 had 4 loans, FY2025 a single loan of $30,000, and FY2026 4 loans at $3.4 million. A year with a single loan or a few tiny ones shows how thin the Kansas market is, and why one year cannot define a trend.

No loss rate

No loss rate is published for Kansas physician offices, and it is not zero.

What a Kansas practice study has to test

With a cancellation floor this high, the study should focus on the points where deals fall apart: a lease that is not signed, a physician who has not completed credentialing with payers, a purchase price not supported by collections, or construction costs rising between approval and closing. It should estimate the patient base in the practice's catchment, referral sources, payer mix, and staffing, then show debt service coverage on a slow start. For any real estate in the loan, the appraisal should separate property from the practice and its equipment.