SBA 7(a) Medical Office Feasibility Study in Oregon

A physician class with a wide spread

Oregon's physician offices under 7(a) have the widest spread of any small cell, and the spread is the point. Sixty-two approvals is the count in print, and the dollars total $46.1 million. Midpoint loan: $273,500, which is 1.09x the nation's 7(a) physician-office midpoint. Yet the middle half of loans runs from $56,250 up to $825,275, so a practice buying exam-room equipment and a group financing a building sit in one table. Oregon places 26 against other states in physician-office 7(a) volume, while medical office is 11 of 39 in Oregon's own class mix. The franchise share is 0.00%.

Who holds the paper

U.S. Bank, National Association holds the most loans, 15, at $5.4 million; Columbia Bank holds 7 and $6.5 million, so fewer loans carry more dollars. The holder is whoever SBA lists now, which may differ from the originator. Multnomah County leads with 12 loans, Washington follows with 10, Lane has 9, Jackson 8 and Clackamas 7. Approvals were lumpy: 12 in FY2025, 9 in FY2026, but only 2 in FY2019 and 2 in FY2024. FY2021 produced $10.3 million from 5 loans, showing how a couple of building purchases can move a year.

Cancellations and the withheld rate

Through FY2024 approvals, Oregon's medical offices lost at least 12.2% to cancellation before funding, with a ceiling of 14.6% when undisbursed loans are counted. A lender reading those numbers would ask why a practice's plan fell through before funding. On charge-offs the page is blank: the funded cohort was short of the loans SBA needs for a stable rate, and the absence is no sign of safety. Any rate on the page is a floor for loans still seasoning.

What a study must establish

A study of an Oregon medical office starts with referral and payer reality, not square footage. It should show the physician supply and patient base in the chosen county, the payer mix expected, and the months a new provider needs before the schedule fills. Since loans range from $56,250 to $825,275, the study must name the project type: a tenant improvement, an equipment package or an owner-occupied building. Fit-out cost per exam room needs a contractor-grade basis. Test coverage against a ramp in which collections lag visits, and against the departure of a key physician. A medical building's specialised build-out may not suit a later user, so state the value if the practice left.