SBA 7(a) Physical Therapy Clinic Feasibility Study in Maryland

Maryland therapy clinics: one bank holds the largest block

Maryland's rehabilitation and therapy clinic loans are small and heavily concentrated with one lender. The 7(a) file holds 65 loans for FY2017 to FY2026, worth $11.6 million in gross dollars. Maryland's $100,000 median is 0.71x the nationwide clinic median, and the inner half of loans falls from $50,000 to $250,000, an amount that fits a lease, a fit-out and a set of treatment tables. Franchise brands account for 1.5% of the loans. Maryland ranks 15th among states by count, while at home the class takes 11 of 39 among financed industries, a mid-table position that leaves room for growth.

One holder, several counties

Manufacturers and Traders Trust Company holds 31 loans, far ahead of Newtek Bank, National Association with 7; they are present holders in SBA's data and not necessarily originators. Montgomery County has 13 loans and Prince Georges 12, with Anne Arundel, Baltimore and Frederick at 7 each and Howard at 5. Lending dipped to 2 loans in FY2020, then recovered to 10 loans a year in FY2024, FY2025 and FY2026.

Cancellation, and a charge-off rate that is withheld

Cancellations among Maryland clinic approvals dated FY2017 to FY2024 came to 11.1% at minimum, and 13.3% if unfunded loans are included. Charge-off rates are not printed for Maryland: too few clinic loans funded in the seasoned window, so no figure is shown and none should be assumed.

Maryland clinic plan: what to prove

Begin with where the patients come from. Referring physicians, orthopedic practices, employers and the clinic's insurance contracts each deserve a line, and the visit volume per therapist should be set against what the schedule can hold. Reimbursement per visit varies by payer, and a study should say which plans the clinic expects to accept. With a median of $100,000 the loan likely funds leased space and equipment, so the lease and buildout dominate the risk. Hiring licensed therapists in Montgomery or Prince Georges is as much a constraint as demand, and wage assumptions should be explicit. The payment must be covered with a slow first year. A franchise, where used, adds fees to be netted from revenue.