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

Therapy clinics that borrow more than average

Washington's rehabilitation and therapy clinics drew 109 loans in the 7(a) program across FY2017 to FY2026, worth $45.5 million. The state is seventh among states for this class, and clinics hold 15 of 39 places within Washington. The median loan of $180,000 is 1.29x the national level, and the middle of the book spans $50,000 to $460,000. No loan is franchised: the share is 0.00%. So the reading is a larger-than-average ticket in a state where the class is a modest part of the program.

Holders, places and years

Banner Bank is the largest holder in SBA's data with 14 loans worth $2.4 million. Heritage Bank has 11 worth $5.5 million, a much larger average. Columbia Bank has 10 worth $1.1 million, while 8 apiece belong to Washington Trust Bank ($2.3 million) and KeyBank National Association ($996,500). These are holder records, no more. King County leads with 46 loans and Pierce County has 15, with Clark at 6 and Grant, Kitsap, Skagit and Spokane at 5 each. Annual volume peaked at 16 loans in FY2019, and dollars peaked at $7.6 million in FY2021. The weakest year was FY2023, with 4 loans and $639,000, and FY2026 reached 17 loans and $5.4 million.

What the outcome floors show

Cancellation removed at least 10.1% of approvals through FY2024, or 11.4% counting undisbursed loans. For 52 early funded loans, 3.8% are charged off so far with the same 3.8% reached inside five years of approval. Loans still open make both numbers minimums.

A Washington clinic study should be built around referral sources and payer rules. Physical therapy depends on physician referrals and, in many cases, on direct access arrangements and insurer contracts, so the study must show who sends patients, how reimbursement per visit is expected to evolve, and how many therapist visits a week the space supports. Therapist hiring and retention are common limits on growth, so coverage should be run with a delayed hire. Costs include treatment rooms, equipment and a gym area, which should be compared with a clinic's revenue per therapist. If the project buys an existing practice, patient retention after the sale decides the value. Whoever appraises the project will split property, equipment and goodwill, and the study should split them too.