SBA 7(a) Veterinary Clinic Feasibility Study in Maryland

Maryland veterinary clinics under 7(a) borrow at 1.72x the nationwide 7(a) veterinary median, with a median of $1.1 million and a middle half between $150,000 and $2.0 million. That very wide middle half, from a small start-up loan to a multi-million acquisition, is what a lender should understand about the class here. The 33 loans total $38.0 million. Maryland is 28th on loans counted, while clinics sit 18th among its 39 asset classes. No loan was franchised.

Live Oak and a regional bank

The first line of the table is Live Oak Banking Company, 12 loans for $19.0 million; the second is Manufacturers and Traders Trust Company, 9 loans for $4.0 million. The second has nearly as many loans for a fifth of the dollars, so its book is of smaller practices. Both figures are SBA's records of loans held, not statements about method. The county order runs Montgomery 9, Anne Arundel 6, Harford 4, then Baltimore, Prince Georges and Washington at 3, and Carroll, Frederick, Howard and Queen Annes at 1.

Year pattern

FY2017 produced 8 loans and $7.8 million, FY2018 3, and FY2019 4 at $7.2 million. A lone loan of $150,000 came in FY2020, then 4, 2 and another lone loan of $22,000 in FY2023. FY2024 had 4, FY2025 had 6 at $8.7 million, and FY2026 none. Very small annual counts mean that this cell shows a market of occasional large deals.

Rates withheld

No rate for cancellation or for charge-off is given, the loans behind each being few. Neither gap means zero.

What a Maryland veterinary study must test

At a median past a million dollars, many of these loans buy established practices, so the study should compare the price with collections and with cash flow after the seller departs. It should assess the client base and how many clients stay through a transition, the supply of veterinarians in a high-cost region, and competition from corporate-owned hospitals. Coverage needs a case where revenue falls during the handover. The study should also state the practice's hours and referral relationships, and how a new owner keeps the existing veterinarians on staff. Where property is included, ask the appraiser to split land and building from goodwill and equipment.