SBA 7(a) Veterinary Clinic Feasibility Study in Florida

Florida clinics: second by count, large by size

Florida ranks 2 among states for veterinary clinic loans under 7(a), with 296 loans and $374.7 million from FY2017 to FY2026. The median loan, $863,000, stands at 1.39x what clinic borrowers receive under 7(a) in other states, and the central half spans $304,750 to $1.9 million. Clinics rank 11 of 39 among Florida classes. Franchise loans are 1.7%, so almost every borrower is an independent practice.

One lender dominates

Live Oak Banking Company holds 99 loans for $178.2 million. Further down, Wells Fargo Bank National Association has 15 loans and $13.5 million, TD Bank, National Association with 15 and $2.9 million, United Community Bank with 12 and $11.2 million, and Fifth Third Bank with 10 and $29.2 million. SBA lists current holders, so the concentration shows where loans sit now. Pinellas County has 25 loans, Palm Beach 22, Broward 20, with Miami-Dade and Orange at 17 each and Polk at 16.

Floors

Cancelled approvals were at least 10.0% of FY2017 to FY2024 loans and 10.4% counting undisbursed ones. Of the 142 loans that funded between FY2017 and FY2021, 1.4% stand charged off so far, with a printed 0.00% inside the first five years, a low floor for a class that borrows large sums. Younger loans may yet change that. The loss record is favourable so far, but it is a floor drawn from a cohort of limited size. A lender and a buyer should read it as a starting point and not a forecast, and the cancellation floor shows approvals that never funded.

Annual flow

FY2025 produced 44 loans and $65.8 million, the largest year, while FY2023 produced only 14.

Testing a Florida practice loan

The study should test pet ownership and household growth in the specific county, the price of an existing practice against its revenue, the cost of equipment and the building, and veterinarian recruitment. Hurricane exposure and insurance cost deserve a line in the operating budget of a coastal clinic. Coverage should be shown at lower patient volume after an ownership change, and the appraisal should divide value between real estate and goodwill. Since loans here run large, a plan below $304,750 may suit a different structure.