Veterinary Clinic Feasibility Study in Colorado

Colorado veterinary loans run large

A Colorado veterinary loan is far bigger than the class norm. The median Colorado vet clinic loan was $1.0 million, 1.68x the national veterinary median, and that median differs widely from both Colorado's lending in every class and veterinary clinics nationwide. It leads this page. Colorado's middle half of vet approvals spans $433,100 to $2.0 million. Colorado ranks 8 of 53 states for these loans, with 111 approvals worth $150.3 million from FY2017 to FY2026; at a location quotient of 1.24x, vet clinics take more of Colorado's SBA lending than their national share, while ranking 13 of 39 among Colorado classes.

A handful of holders carry the Colorado book. Live Oak Banking Company holds 27 loans worth $49.9 million, Wells Fargo Bank National Association 11 worth $22.0 million, United Community Bank 10, Fifth Third Bank 7 worth $13.1 million and PNC Bank, National Association 5. SBA 7(a) carried 94 loans and SBA 504 17; B:Side Capital holds 9 of the Colorado 504 loans and Preferred Lending Partners 6, worth $11.1 million. No loan is franchised (0.00%). Jefferson County leads with 21 approvals, El Paso has 14, and Arapahoe, Denver and Douglas 10 each, with Larimer at 9. FY2021 was the high point, with 16 loans for $29.3 million.

Colorado vet outcomes

Colorado cancelled at least 10.9% of the vet loans it approved for FY2017 to FY2024, and the ceiling matches at 10.9% since no Colorado approval from those years still awaits funds. Losses are low: of 55 Colorado clinics funded in FY2017 to FY2021, 1.8% are charged off, the same 1.8% inside five years, so the Colorado failures on record came early. These are floors.

What a Colorado veterinary study has to prove

A Colorado vet study carries the burden of a ticket far above the class norm. Demand testing means pet-owning households, income and growth in the trade area, and the general and specialty hospitals and corporate-owned clinics already competing. For a purchase, the study must test whether the seller's revenue and clients survive the sale, especially if the selling veterinarian leaves. In Colorado, cost work prices the clinic building or its fit-out, surgical and imaging equipment and staffing. The clinic must carry its debt service on realistic production per doctor, with a loan near $2.0 million tested harder than one at the $1.0 million median. Where real estate is included, the appraisal should value the Colorado building for alternative medical or retail use, separate from goodwill.