Veterinary Clinic Feasibility Study in Washington

A larger ticket than the national clinic

Washington's veterinary lending is unusual for the size of the loan rather than the volume. Between FY2017 and FY2026 SBA approved 83 loans to veterinary clinics in the state, with $111.1 million of gross approvals. A median of $876,900 stands at 1.41x what clinics nationally borrow at the middle, and the median is the metric on which this cell stands apart from Washington lending as a whole and from the clinic book across the country. The middle half of approvals runs from $404,350 to $1.8 million, so Washington clinic loans sit in a high band relative to the national median. The state ranks 13 of 53 for clinic loans and the class sits 16 of 39 among Washington's asset classes, while a location quotient of 0.91x puts clinics a little below their national weight in Washington approvals.

Programs and lenders

The 7(a) program carried 73 of these loans and the 504 program only 10, and no loan in the cell is flagged as a franchise. Live Oak Banking Company is far ahead among 7(a) holders, with 16 loans and $22.4 million. United Community Bank and U.S. Bank, National Association follow with 5 loans each, at $7.0 million and $6.9 million, and Banner Bank also holds 5 but only $1.1 million. On the 504 side Northwest Business Development Association is the one development company with 5 or more loans, holding 5 and $3.9 million. Geography is concentrated: King County leads with 18 loans and Snohomish County follows with 13, so the evidence leans on the state's two largest counties by clinic count.

Cancellations, losses and a lumpy calendar

Annual volume is erratic. FY2021 produced 17 loans and $26.7 million, then FY2022 fell to 2 loans and $1.7 million before volume recovered to 9 in FY2024 and again in FY2026. Washington clinic deals fell away before funding at a floor of 11.8% among the earlier approval years, FY2017 to FY2024; adding every undisbursed file as a cancellation gives 11.8% as well, so the cancellation rate is not an artefact of timing. Looking at the 42 loans that funded in the earliest cohort, 0.00% have been written off to date and 0.00% inside five years of approval. Open loans can still default, so read those as floors, but no early failure shows in the record.

What the study has to test

The size of the typical loan is the thing to interrogate. A feasibility study for a Washington clinic should justify a project near $876,900 by testing the catchment: how many households with pets sit within a short drive, how many competing practices serve them, and whether the veterinarian count in the area can staff the build. Construction and equipment cost need to be set against that ticket. Coverage should be run on collections that ramp over a realistic period, with the owner's own draw included. An appraiser will lean on income, so the revenue case must be one an appraiser can defend, and the cancellation floor is a reminder to confirm those numbers before closing.