SBA 7(a) Medical Office Feasibility Study in Utah

A medical office loan at the national yardstick, in two counties

Utah physician offices are priced almost exactly on the national line: the $252,800 median is 1.01x the nationwide reading, and the central loans run from $89,500 to $516,750. The cell records 103 loans and $57.3 million for FY2017 to FY2026. Utah is 18 among states, and the class places 8 of 39 at home. Franchising is nearly absent at 0.97%. What marks Utah is geography and the low failure record. Salt Lake County has 49 loans and Utah County 24, with Davis and Washington Counties at 7 each, Tooele at 4 and Weber at 3.

The lending side

Central Bank is shown as holder of 16 loans worth $9.7 million. Next, with 11 loans and $3.6 million, is Mountain America FCU, and Zions Bancorporation, National Association has 9 totalling $2.2 million. First Utah Bank has 7 with a high $6.6 million, and Wells Fargo Bank National Association 7 with $4.5 million. Such names merely record who holds a loan now. The calendar is uneven: 15 loans and $6.7 million in FY2018, only 5 loans and $1.2 million in FY2022, then 14 loans and $14.5 million in FY2024, followed by 16 loans and $6.8 million in FY2025.

Outcome floors

A light 5.3% of approvals through FY2024 was lost to cancellation, with the same 5.3% on the broader reading. All 45 early funded loans are clear of charge-offs: 0.00% to date and 0.00% across five years. Those are floors, and loans still open could change them.

For a Utah medical office, the study should start with the specialty and the referral base, then show payer mix, visits per provider per day and how the planned space changes capacity. In a market where Salt Lake and Utah counties dominate, the site must be placed against hospitals, clinics and growth corridors, and the study should count competing practices. If the project buys a practice, retention of patients and the seller's role during the handover affect value. Hiring medical assistants and front-office staff influences growth, so coverage should be tested with slower recruitment. Leasehold improvements, equipment and any purchased goodwill should be priced separately. Appraisers handle the real estate and the practice as different assets, and the study should mirror that. No approval is implied.