CALIFORNIA · NAICS NAICS 6233 family
California assisted living projects are senior housing, which lenders and the SBA treat as special-purpose in practice. Studies establish service-area demographics, document competing supply at the unit and licensure level, model payer mix and rate structure, and stage a month-by-month occupancy ramp to stabilization with the staffing plan underneath it.
FEASIBILITY TRIGGER
Special-purpose senior housing is study-mandatory in practice; lenders expect month-by-month ramp to stabilization, payer mix, and staffing analysis.
SBA 7(a) and 504 lenders funded 652 assisted living projects across California between FY2010 and FY2026, moving $755.6 million in approved capital at an average ticket of $1.2 million. That volume places California at #1 of 38 states measured for assisted living SBA activity, or 20.6% of national assisted living dollars. The 7(a) program carried 85.9% of the loan count, with 504 taking the balance, and 110 approvals have hit the pipeline since FY2024.
| Disbursed loans (FY2010–FY2026) | 652 |
| Approved volume | $755.6 million |
| Average loan size | $1.2 million |
| 7(a) share | 85.9% |
| Approvals since FY2024 | 110 |
| State rank by loan count | #1 of 38 |
Among the 444 seasoned loans in this segment (approvals FY2010–FY2021), 2.3% reached adverse resolution — purchased, liquidated, or charged off. The national benchmark for assisted living is 4.1%, against 7.3% across all industries. That performance runs below the national benchmark for this asset class, a credit-positive signal for lenders.
Source: SBA 7(a) and 504 FOIA loan-level data, as of March 31, 2026. Disbursed loans only. See data methodology.
A 2.3% adverse-resolution rate below the national assisted living benchmark of 4.1% supports the credit story for well-underwritten California projects in this class. Across 652 SBA loans averaging $1.2 million, that track record does not eliminate the need for a third-party feasibility study, but it means a rigorous study reinforces rather than defends the projections.
Every California assisted living project we underwrite follows the same lender ready process: independent market analysis, site and technical review, and financial projections tested against SBA SOP 50 10 8 standards. Our SBA feasibility study consultants guide explains scope, timing, deliverables, and what lenders and CDCs expect in the report.
California projects most often pencil under SBA 504 because the 50/40/10 structure delivers up to 90 percent financing on owner-occupied real estate at a fixed debenture rate, which is decisive where California land and improvement costs run high. SBA 7(a) covers acquisitions, working capital, and equipment, and from July 4, 2026 eligible borrowers can combine 7(a) and 504 for up to $10 million in total program credit.
California's aging population trajectory and tight licensed supply make documented service-area demand and staffing economics central to any credible study.
For a national view of this asset class, see our assisted living SBA feasibility overview, and read our related analysis in the assisted living lending research on our blog.
Public SBA and CDC program records, cited as program evidence
$4.5M total project through Florida First Capital
Expansion from 38 to 92 beds with refinance, national program evidence
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