SBA 7(a) Medical Office Feasibility Study in New Jersey

Physician offices under 7(a) in New Jersey

Between FY2017 and FY2026, SBA approved 161 loans under its 7(a) program for medical office (physicians) projects in New Jersey, worth $74.8 million in gross dollars. New Jersey's rank by loan count is 9 for this pairing, and the class itself ranks 10 of 39 among the asset classes financed in New Jersey. The median loan of $248,000 sits at 0.99x of the nationwide benchmark for physician offices, which tells a reader something plain: a New Jersey physician practice borrows about what a practice borrows anywhere else under this program. None of the measures on this page lies far from both the class across both programs in the state and the program nationally, so the useful detail is local, in the lenders and counties below.

Loan sizes, lenders and geography

The central band of loans stretches from $104,200 to $531,800. Franchising barely touches the class, at 3.7% of loans. The current holders SBA reports are led by TD Bank, National Association with 27 loans and $9.6 million, then Newtek Bank, National Association with 16 loans and $4.1 million. Wells Fargo Bank National Association, with only 12 loans, holds $7.8 million, more dollars than Newtek. JPMorgan Chase Bank, National Association with 10 loans and $2.4 million, and PNC Bank, National Association with 7 loans and $2.0 million. Note the contrast in average ticket: Wells Fargo holds fewer loans than TD Bank but a larger dollar total. By county, Essex leads with 21 loans, Bergen follows with 20, and Passaic and Union hold 17 each. Annual volume was thin in FY2020, at 6 loans and $4.5 million, and recovered to 24 loans in FY2024 and 23 in FY2026, when dollars reached $10.2 million.

New Jersey's cancellation floor stands at 13.9% of loans approved from FY2017 to FY2024, and it climbs to 15.7% when loans that have not yet disbursed are written down as lost. Both are floors on what happened, not complete tallies. Across the 64 funded loans of the FY2017 to FY2021 cohort, the write-off floor is 1.6% so far, while the five-year figure sits at 0.00%. Charge-offs that come later than year five are therefore the whole story in this cohort, and loans that remain open can still change the picture.

Testing a New Jersey physician-office request

A study for a New Jersey medical office loan under 7(a) has to begin with payer mix and referral patterns, because a practice's revenue depends on insurers and hospital relationships that a building cannot change. It should test the build-out or purchase cost against a typical $248,000 loan, demonstrate that payments are covered through a slow first year while credentialing and patient panels build, and price the lease or ownership choice. The appraisal must support the real estate and any leasehold improvements separately from the practice goodwill. Because roughly one in seven approvals in this cell was cancelled before funding, the study should also show that the borrower can close on schedule, with permits and landlord consent in hand.