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

The smallest tickets in the therapy class

Minnesota therapy clinics borrow in small amounts. The 54 loans on file add up to only $11.8 million, and the midpoint loan of $75,500 is 0.54x the national 7(a) midpoint for rehabilitation and therapy clinics. The lower quarter of loans stops at $26,250 and the upper quarter begins at $240,050, so most of this lending is equipment, leasehold fit-out and working capital for a practice that rents. The state ranks 20 against other states in this class and program, while therapy clinics hold place 17 of 39 in Minnesota's own mix, a modest standing. Franchised clinics are 7.4% of loans.

Lenders, counties and the calendar

U.S. Bank, National Association holds 10 loans with $2.0 million behind them. Old National Bank has 5 loans and $1.6 million; The Huntington National Bank holds another 5 loans, $1.3 million in all. The holder named is whoever SBA lists today. Hennepin County is far ahead with 15 loans, Dakota has 7, Washington 6, Ramsey 5 and Anoka 4, which tells a reader that clinic lending is a metro-suburban story. Year by year the count moved from 4 in FY2017 and 3 in FY2018 to 7 in FY2019, dipped to 4 in FY2022, and reached 11 in FY2025, with 3 so far in FY2026.

Cancellations, and the missing loss rate

Minnesota clinic approvals dated through FY2024 show at least 7.5% cancelled, the ceiling being identical. No charge-off rate is published for this cell: the number of funded loans in the earliest cohorts fell short of SBA's floor for a stable rate. That absence tells a lender nothing either way, and we put no number in its place. All of the rates here are floors, since a loan approved recently has had little time to default.

What a Minnesota therapy study must answer

A study for a therapy clinic is a study of referrals. It should identify the physicians, surgeons and employers within reach who send patients, the payer mix the practice expects, and the visit volume per therapist that the schedule can sustain. Because so many loans are modest, the study should separate fit-out cost from equipment and from the working capital a clinic needs while insurers reimburse slowly. Show treatment rooms, how the lease compares with the loan term, and the hiring plan, since therapist supply limits revenue more than space does. Coverage should be run with a slow referral ramp. If the owner is buying a practice, the study must test what happens when the founding therapist steps back.