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

Bigger loans than the national norm

Texas therapy clinics borrow at a median of $214,700 under SBA 7(a), a ratio of 1.53x against the national 7(a) median for therapy, and that gap is the distinct measure here. Half the loans sit between $76,125 and $397,850. From FY2017 to FY2026 the program approved 270 loans worth $108.0 million, giving Texas 2 among states, while the class is 14 of 39 among Texas asset classes. Franchise brands account for 19.6% of loans, which signals a real branded segment in the state.

Cancellation low, charge-off not

Cancellations of approvals through FY2024 reach only 8.1%, or 8.6% if undisbursed loans are counted, a smaller floor than many classes show. Charge-offs tell a different story: of 98 loans in the funded cohort, at least 6.1% have been charged off to date and 5.1% did so within five years of approval, so most losses came early. Open loans may add to both floors. Volume went from 25 loans in FY2017 to 15 in FY2020, then to 49 loans and $17.6 million in FY2025, and 23 so far in FY2026.

Lenders and metros

The Huntington National Bank has 27 loans worth $10.7 million; PNC Bank, National Association, has 17, with Wells Fargo Bank National Association level, JPMorgan Chase Bank, National Association has 14 and PeopleFund 13 loans worth $2.2 million. The list is SBA's record of present holders. Harris County has 47 loans, Tarrant 24, Bexar 21, Collin 18 and Fort Bend 16, with Denton at 15 and Dallas at 12, so Harris County stands well above Dallas County for this class.

What the Texas clinic study has to prove

Demand for therapy depends on referral relationships and payer contracts more than on the building. A study should map competing clinics and hospital-owned practices, test visits per therapist and net revenue per visit, and show how long insurer credentialing takes before collections arrive. For a franchised clinic, the royalty and marketing cost must be set against that revenue, and the agreement's territory rights reviewed. Larger tickets than the national norm imply more build-out and equipment, so contingency belongs in the budget. Debt service coverage should hold with a gradual ramp, and early charge-offs argue for working capital in reserve. The study should also record who will treat patients on day one, because a clinic that opens before its first licensed therapist is on payroll earns nothing while rent runs.