SBA 7(a) Physical Therapy Clinic Feasibility Study in New York

Therapy clinics with small loans and a low charge-off floor

In New York, rehabilitation and therapy clinics rank 12 of 39 among asset classes, and New York holds third place nationally by count of such loans. The file records 261 approvals since FY2017, worth $80.8 million. Franchising barely registers at 1.5% of loans and the median loan is $100,000, only 0.71x of the nationwide 7(a) figure. Loans in the middle band are priced $50,000 to $314,200.

The loss record

The funded loans have done well so far. Cancellation was at least 9.3% for approvals from FY2017 to FY2024, and 10.9% with undisbursed loans counted. Of 108 loans funded across FY2017 to FY2021, 1.9% show a charge-off today, while none (0.00%) failed inside five years. Later years could change these floors. The cancellation floor of 9.3% and the ceiling of 10.9% sit close together, so few approvals in these years were still waiting to be disbursed, and the charge-off floor of 1.9% rests on a funded cohort of 108 loans, which is large enough to print.

Lenders and places

JPMorgan Chase Bank, National Association has 48 loans, TD Bank, National Association 39 and Manufacturers and Traders Trust Company 37, followed by KeyBank National Association with 12 and BayFirst National Bank with 11. SBA lists the current holder of each, so this describes holdings and no lender's policy. Nassau County has 35 loans, Queens 34, New York 30, Suffolk 30 and Kings 24, so these counties carry the class. Volume was 42 loans in FY2025 and 11 in FY2020, with FY2021 at 23 loans and $20.4 million.

What a clinic study has to test

The study should name the referral sources, assume the payer mix and reimbursement rates, and show visits per therapist per day. Staffing is the constraint: licensed therapists, front-desk staff and the owner's own capacity. The lease, build-out for treatment rooms and equipment should be set against a loan near the $100,000 median. The repayment test should include a slow credentialing period with payers and the departure of a therapist, and an appraiser will value the practice on collected income.