Feasibility Study Data for the Tucson, AZ Metro Area

Tucson, Arizona, shows 1,432 SBA approvals for FY2017 to FY2026 and $829.0 million gross, rank 72 of 928 on loan count. Its loans split 1,289 under 7(a) and 143 under 504. Tucson's median loan is $277,700, or 1.34x the national figure, with the central half running $100,000 to $646,550, and franchises account for 13.3% of loans. All placed loans sit in Pima County, so the Tucson record is the Pima County record.

Medical offices among the leaders

Tucson is unusual among nearby areas because its largest named class is limited-service restaurant at 47 loans, just ahead of full-service restaurant at 46, with hotel and motel at 37, medical office at 31 and dental office at 28. Medical and dental offices together show that professional-practice real estate has a place in local lending, which calls for payer mix, chair or room count and the owner-dependence of revenue to be tested. A total of 1,006 loans sit outside the named classes. Volume began at 159 loans and $72.4 million in FY2017, dipped to 104 loans in FY2022, peaked at 193 loans and $88.2 million in FY2025, and ended at 157 loans and $116.4 million in FY2026, the highest dollar year.

Banks and development companies

Wells Fargo Bank National Association holds 177 loans and $71.6 million under 7(a), Zions Bancorporation, National Association 101 loans and $43.5 million, and U.S. Bank, National Association 84 loans and $13.2 million. Under 504, Arizona Capital Source holds 98 loans and $68.6 million and The Mortgage Capital Development Corporation 23 loans and $37.9 million. Each Tucson name is listed because SBA's records show loans it holds or held in Tucson; the list ranks no service and states no requirement.

Cancellation floors and the Tucson study

Tucson's cancellation floor is lower than most of its peers: 8.8% for approvals of FY2017 to FY2024, 9.9% when undisbursed loans count as cancelled. Among 625 funded Tucson loans, charge-offs stand at 6.1% or more, with 3.0% inside five years; loans still open can raise these. Tucson's area is Pima County, placed through the July 2023 delineation by name, and a loan with an unplaceable county is left out. A feasibility study for a Tucson project should test local demand, cost, coverage on a conservative year and comparable-based value; for the restaurant and hotel classes that lead, it should add seasonal occupancy, rate and sales per seat. Daniel Smith, MAI, signs each study.