SBA 7(a) Medical Office Feasibility Study in Michigan

One lender dominates Michigan's medical office book

In Michigan, The Huntington National Bank is the holder of 98 among the 214 medical office loans, with $36.2 million, close to half the file. JPMorgan Chase Bank, National Association follows with 14 loans and $7.8 million, Fifth Third Bank with 13 and $2.9 million, ChoiceOne Bank with 12 and $6.0 million and, smallest on the list, Bank of America, National Association with 6 and $4.3 million. A borrower in Michigan will therefore deal mostly with a lender that holds many such loans. The table lists portfolios, and tells us nothing of what any lender requires.

Loan sizes and standing

For FY2017 to FY2026 the file holds 214 loans worth $96.5 million. The median of $200,000 is 0.80x the median for physicians' offices nationally, with the middle of the range between $100,000 and $489,500. Michigan is eighth among states on count, and physicians' offices hold tenth place on the state's list of 39 classes. Franchising is nearly absent at 0.93%. These are small, independent practices: a physician buying into an existing office or equipping a new one.

Cancellations are the weak point

At least 15.5% of Michigan approvals across FY2017 to FY2024 lapsed, and 16.7% if loans awaiting disbursement are counted as cancelled, one of the higher figures among medical office cells. Charge-offs are more moderate: of 95 loans disbursed in FY2017 to FY2021, 4.2% stand charged off today, and the same 4.2% inside five years, which says all the losses came early. Both are minimums.

Metro Detroit and beyond

Oakland County leads with 55 loans, ahead of Wayne with 37 and Macomb with 25, so the Detroit suburbs carry the file. Genesee has 17, Kent 14, Ingham 8, Washtenaw 7, Muskegon 6, Ottawa 5 and Livingston 4. Approvals peaked at 28 in FY2025 and dipped to 12 in FY2019, and the latest year, FY2026, shows 18.

What a Michigan medical office study has to test

Revenue rests on payer contracts, so the study should state which insurers and government programs the practice will bill, the time to credential, and the reimbursement per visit. Show referral relationships and hospital ties, patient volume per physician and staffing for front office and clinical roles. Exam rooms, plumbing and records systems should be priced against the $200,000 median, and any request toward $489,500 should be tied to a purchase or a building. With so many approvals lapsing, the closing timeline deserves attention. Repayment should hold with patient volume lagging for the first year, and an appraiser of any building will ask who else could occupy the space.