Veterinary Clinic Feasibility Study in Indiana

Indiana vets borrow about two thirds of the national midpoint

The distinctive metric in Indiana's veterinary file is loan size. A median of $411,000 is 0.66x the figure for veterinary loans nationwide, and the screen counts that as a clear difference. Most requests sit between $212,500 and $749,700. Over FY2017 to FY2026 the state recorded 57 loans worth $44.2 million, 21 of 53 among states, with the class holding 15 of 39 inside Indiana and a location quotient of 0.82x. Veterinary lending exists in Indiana but at a lighter scale than elsewhere.

Programs and lenders

SBA 7(a) carried 41 loans and SBA 504 carried 16, and none were franchised, at 0.00%. Regional Development Company has 6 loans worth $4.0 million on the 504 side. Live Oak Banking Company also has 6 loans, worth $11.2 million, an average more than four times that of The Huntington National Bank, which has 5 loans worth $1.6 million. Live Oak is clearly financing acquisitions of larger practices. Hamilton County has 8 loans, Marion 7, Lake 6 and Porter 4, so suburban Indianapolis and the northwest corner lead.

Cancellation, repayment and a gap year

Cancellation took at least 12.0% of approvals dated FY2017 to FY2024; the ceiling, 12.0% as well, shows no undisbursed extras. Among the 37 loans disbursed over FY2017 to FY2021, 0.00% show charge-offs to date and 0.00% inside five years, both floors. Annual counts fell from 12 loans in FY2017 to none at all in FY2023, with $0 approved, then recovered to 5 loans and $3.5 million in FY2025. A year with no approvals tells us that the market is thin enough for single quarters to matter.

Questions for an Indiana clinic study

A study should start with the type of practice, whether companion animal, mixed or large animal, since demand drivers differ. It should count pet households and competing hospitals in the trade area, and test whether the clinic can recruit veterinarians. Equipment and build-out costs should be set against the modest tickets lenders approve. Coverage should be tested on a slow first year, and the appraisal needs to pull real estate apart from goodwill. Lenders also look hard at the veterinarian-owner's own credit and the plan for coverage during leave.