SBA 7(a) Veterinary Clinic Feasibility Study in Tennessee

Tennessee veterinary clinic lending in SBA's records

In Tennessee, SBA 7(a) approved 50 loans in the veterinary clinic class. Across FY2017 to FY2026 in Tennessee that came to $56.3 million gross. Counting veterinary clinic loans, Tennessee ranks 20 across states for veterinary clinic under this program, and veterinary clinic sits 12 of 39 among Tennessee classes. A median of $741,000 is 1.20x of the national veterinary clinic median under SBA 7(a), so Tennessee runs above the norm. For veterinary clinic in Tennessee, the middle half spans $211,250 to $1.4 million, and franchise flags mark 10.0% of Tennessee veterinary clinic loans.

Who holds the veterinary clinic loans, and where

The largest named veterinary clinic holder in Tennessee is Live Oak Banking Company: 15 loans worth $18.7 million. Holders in Tennessee are those SBA currently lists. The Tennessee veterinary clinic county count starts with Knox at 9, Rutherford at 8, Shelby at 4, Davidson at 3, Montgomery at 3.

Timing of Tennessee approvals

The Tennessee veterinary clinic calendar shows 2 loans ($1.5 million) in FY2019, then in Tennessee 7 in FY2020 ($3.3 million), and in Tennessee 6 in FY2021 ($3.5 million), 3 in FY2023 ($9.2 million) and 3 in FY2024 ($3.7 million) against Tennessee's peak of 11 in FY2017.

Veterinary clinic cancel and charge-off floors

In Tennessee, approval did not always mean a veterinary clinic loan: of FY2017 to FY2024 Tennessee approvals, at least 17.5% ended in Tennessee cancellation, with 20.0% the ceiling if undisbursed veterinary clinic loans are added. The veterinary clinic cohort funded in Tennessee is too small, so Tennessee holds no stable charge-off rate for veterinary clinic loans in Tennessee funded FY2017 to FY2021; Tennessee withholds the rate, and Tennessee lenders should not read it as zero.

Underwriting a Tennessee veterinary practice

A veterinary loan blends a professional practice with a building and equipment, and the study has to treat both. In Tennessee it should size the pet-owning households in reach, count competing clinics and emergency hospitals, and test whether the planned exam rooms and surgery suite fit the doctors the practice can recruit. Revenue per doctor, staffing, and an acquisition price set against collections belong in the coverage model, which should include a slower first year. If the real estate is included, the appraiser values it as a specialised clinic.

Tennessee clinics and the loss gap

No coding caveat applies to veterinary clinics, so Tennessee totals read directly. The withheld loss rate is a gap, not good news; the study should test staffing shortfalls and slower caseload growth on its own.