Veterinary Clinic Feasibility Study in South Carolina

Bigger clinic loans than the country

South Carolina clinic lending is distinctive for the size of the loan. SBA approved 52 loans to veterinary clinics from FY2017 to FY2026 with $75.7 million in dollars, and a median of $1.0 million that is 1.62x the class median nationally. The median is where this cell parts from the rest of the state book and from clinics elsewhere. Half of the approvals fall between $445,000 and $1.8 million. The state ranks 22 of 53 for clinic loans, clinics hold 13 of 39 slots in the South Carolina mix, and a location quotient of 1.46x shows more weight in the state than nationally. Together these suggest that purchases and ground up hospitals are common.

Lenders and counties

The 7(a) program carried 48 loans and 504 only 4, and no loan is a franchise. Live Oak Banking Company leads with 11 loans and $19.1 million. United Community Bank has 7 loans and $6.9 million, Fifth Third Bank has 5 and $9.9 million, and First-Citizens Bank & Trust Company has 5 and $2.8 million,. Greenville County has 10 loans, Charleston 9, and Horry and Lexington 5 each.

Timing and missing rates

FY2017 was the largest year with 8 loans and $11.8 million, and FY2023 the thinnest with 3 loans although they carried $6.2 million. Cancellation shows a floor of 11.6% through FY2024, and the ceiling is the same. Too few loans funded in the early cohort for a charge-off rate, so none is offered and no loss figure is implied.

What a clinic study has to prove

At a median near $1.0 million, a South Carolina clinic project is probably more than a lease and a few exam rooms. The study should state whether it is a purchase, a build or an expansion, and test demand in the catchment: pet owning households, existing hospitals and emergency options, and how many veterinarians the owner can hire. Imaging, surgical and kennel space add cost, so the budget should tie each item to revenue it will produce. Coverage should show collections growing over a realistic ramp, with the owner's pay included. An appraiser will look at income and, where real estate is financed, at the building's value for other uses, so a conservative revenue case is the foundation of the loan.