SBA 7(a) Medical Office Feasibility Study in Washington

Physician offices in Washington borrow less than peers

Washington's physician-office loans under SBA 7(a) are smaller than the national pattern. Over FY2017 to FY2026 the state recorded 118 loans worth $67.0 million. Their median is $189,000, only 0.75x the level seen nationally, while the interquartile band lies from $50,000 to $508,250. Washington is 15 among states for this class, and physician offices hold 14 of 39 places in the state, so they are a modest line of business. No loan in the cell is tied to a franchise: the share is 0.00%, which fits independent and group practices.

Who holds them and where

The largest holder shown is U.S. Bank, National Association, at 18 loans and $7.7 million. KeyBank National Association has 12 worth $2.3 million, JPMorgan Chase Bank, National Association has 8 worth $685,500, Wells Fargo Bank National Association has 7 worth $6.0 million, and Columbia Bank has 6 worth $824,500. The dollars per loan vary by an order of magnitude between those names, and they are holder records only. King County has 42 loans, nearly double Pierce County's 22, and Clark, Snohomish and Spokane have 8 each. Volume peaked at 17 loans and $16.6 million in FY2021, fell to 4 loans in FY2020 before that, and in FY2026 reached 17 loans and $12.9 million.

What the early cohorts show

Cancellation took at least 9.8% of approvals through FY2024, and the share is unchanged at 9.8% when undisbursed loans are counted. For the 50 early loans that funded, 4.0% are charged off so far, and half of that rate, 2.0%, occurred within five years. These are minimums, because other loans remain open.

Any study for a Washington medical office needs to lead with the physicians and the panel they serve. It should show payer mix, expected visits per provider, and how the new space or purchase changes capacity, whether exam rooms, procedure rooms or imaging. Seattle-area rents differ widely from Spokane and Yakima, so the occupancy cost per square foot must be local. Recruitment of nurses and medical assistants affects whether volume can grow, and coverage should be tested with slower hiring. The appraisal will treat the building, leasehold improvements and practice value as separate pieces; the study should keep its income projections consistent with that division, and no outcome can be promised.