SBA 7(a) Veterinary Clinic Feasibility Study in New Jersey

A mid-sized loan with a clean early record

New Jersey's veterinary clinics sit close to the national norm on loan size, with a median of $654,200 that is 1.06x of the nationwide figure, but they differ in how the loans are held and in where they sit. SBA approved 65 loans for $74.9 million between FY2017 and FY2026. Half of the loans span $100,000 to $1.3 million, a wide range covering startups and larger acquisitions. New Jersey is 14 among states, and clinics rank 17 of 39 at home. No loan carries a franchise flag, at 0.00%. The early funded group of 30 loans shows no charge-offs at all, 0.00% to date and within five years.

Live Oak and the other holders

Fourteen loans, worth $28.1 million, are with Live Oak Banking Company. Firstrust Savings Bank holds 7 worth $12.0 million, and TD Bank, National Association holds 7 worth only $576,400. The comparison of dollars per loan is stark. Holder entries come from SBA's file and say nothing of how a bank lends. By county, Morris leads with 13 loans, Monmouth has 11, Middlesex 6, and Hunterdon and Mercer 5 each, while Bergen, Camden and Ocean have 4 each.

What the floors mean

Cancellation reached at least 10.4% of approvals dated FY2017 to FY2024 and 12.5% on the stricter count. The zero charge-off figures sit on exactly 30 loans, the smallest group for which we publish a rate, so one default would move them visibly; and loans still open could yet fail. Treat 0.00% as a floor on a thin base.

What a New Jersey veterinary study has to test

A clinic study begins with the doctors and the client base. How many veterinarians will practise, whether the clients come with an acquired practice, and how referrals and walk-ins build in a new one. Revenue comes from exams, surgery, diagnostics, boarding or retail, and each deserves a line supported by comparison with nearby hospitals. Households with pets near the site, and the density of competing clinics and emergency hospitals, set the demand ceiling. Because staff are hard to recruit, a wage schedule with turnover deserves its own downside run. Equipment such as imaging and surgical suites makes build-out expensive, so the budget should rest on quotes, and the appraisal must support any building bought. For an acquisition, the study should test the price paid for goodwill against cash flow after the owner leaves.