Skilled Nursing Feasibility Study in the Minneapolis-St. Paul-Bloomington, MN-WI Metro Area

Skilled nursing and a second-place area rank

For skilled nursing, Minneapolis-St. Paul-Bloomington, MN-WI stands second among 203 metro and micro areas, even though the class is only 22nd of 39 inside the metro. The metro holds 34 SBA loans for FY2017 to FY2026 and $29.5 million. A location quotient of 2.40x puts skilled nursing at more than twice the national share. The $620,500 median is 0.93x the national class figure, with the central half stretching from $281,500 to $987,500.

Programs, holders and counties

Programs divide 27 to 7 between SBA 7(a) and SBA 504. Byline Bank reaches five loans, holding 5 worth $7.3 million as SBA reports current holders; the entry says nothing about how Byline lends. Hennepin County has 15 loans and Ramsey County 9. Franchise share is not printed.

A lumpy record by year

FY2019 prints 5 loans and $3.1 million, FY2020 prints 0 loans and $0, and FY2022 prints 6 loans and $3.1 million. FY2023 prints 10 loans and $11.5 million, and FY2026, complete, prints 0 loans and $0. The blank years, among them FY2017, FY2018 and FY2021, are too thin for display, not empty. Cancellation and charge-off figures would need 30 loans disbursed in FY2017 to FY2021; this metro has fewer, and Loan Analytics' own rule leaves them out.

What a nursing-facility study must test

A skilled nursing project has to prove occupancy at the mix of payers the beds will actually serve, the staffing needed to hold licensure, and the reimbursement that results, because revenue rests on those rather than on a market rent. The study should test bed count against the building, construction or renovation cost set beside the $987,500 upper edge of the central half, and coverage of debt service once the census has stabilised after a realistic fill. One coding limit matters: hospice care delivered inpatient, together with assisted living that includes nursing, share one code, which keeps them inside the skilled nursing figures. A feasibility study cannot lean on the area rank alone. Expect the appraiser to lean on licensed capacity and operating income; a loan joins the metro by the county of its project.