Veterinary Clinic Feasibility Study in New Mexico

A class with a high share in New Mexico

Clinics for animals figure more prominently in New Mexico approvals than in the national record. The location quotient is 1.94x, and clinics hold position 13 of 39 across New Mexico classes, even though the state is 36 of 53 for number of loans. The cell holds 29 clinic approvals between FY2017 and FY2026, worth $34.8 million. None of its figures is marked as distinctive, so the figures below describe it without ranking one over another.

Bigger loans than the national median

The median here is $1.0 million, or 1.68x what the national median clinic loan is. Half of the loans lie between $299,700 and $1.8 million. A New Mexico clinic loan is therefore usually larger than the national median clinic loan. The program mix is lopsided: 28 loans used 7(a) and one loan used 504, while franchising is absent at 0.00% of loans.

Lenders and counties

Firstrust Savings Bank is the leading 7(a) holder here, with 7 loans and $10.3 million, and First Financial Bank holds 5 with $5.4 million. The names reflect who SBA lists as the current holder of each loan and say nothing of any lender's policies. Bernalillo County leads with 11 loans, Valencia has 6 and Santa Fe 5, then Otero and San Juan with 2 each. Annual approvals ranged from 5 loans in FY2020 and FY2022 to none in FY2026, a complete fiscal year, with the largest year, FY2018, at $7.4 million.

What the withheld rates cannot say

Cancellations and charge-offs get no percentage for New Mexico clinics; Loan Analytics leaves out any rate resting on fewer than 30 loans, and these cohorts fall short. They are not zero, and no reader should assume a clean history from the omission.

What a study for a New Mexico clinic must test

The first task for the study is the number of animals and owners served, expressed through the practice area and its competitors. It should test whether revenue per veterinarian, and the ability to hire and keep one, supports a loan near the $1.0 million median. Construction or purchase cost needs a comparison with comparable clinics, and the coverage ratio needs a cautious first year. Because lenders often rely on the going concern, the appraisal must value the practice and the real estate separately, and the study should anticipate that split. The data attaches no coding caveat to veterinary clinics.