CALIFORNIA · NAICS 713940
California fitness center projects, from franchise concepts to independent boutique studios, are underwritten on membership models. Studies analyze trade-area demographics, competitive saturation, franchise terms, member acquisition cost, attrition assumptions, and the ramp to mature membership before coverage stabilizes.
FEASIBILITY TRIGGER
Membership-model projections, franchise terms, and trade-area saturation drive lender study requirements for fitness deals.
California generated 1,310 SBA-disbursed fitness center loans between FY2010 and FY2026, worth $582.3 million in approved 7(a) and 504 financing at an average of $445,000 per deal. Ranked #2 of 38 states for fitness center SBA volume, the state captures 9.6% of national fitness center dollars. 94.0% of the loans ran through 7(a) with 504 covering the remainder; 317 approvals have posted since FY2024.
| Disbursed loans (FY2010–FY2026) | 1,310 |
| Approved volume | $582.3 million |
| Average loan size | $445,000 |
| 7(a) share | 94.0% |
| Approvals since FY2024 | 317 |
| State rank by loan count | #2 of 38 |
Among the 852 seasoned loans in this segment (approvals FY2010–FY2021), 11.4% reached adverse resolution — purchased, liquidated, or charged off. The national benchmark for fitness center is 10.9%, against 7.3% across all industries. That performance runs above the national benchmark for this asset class, which is a factor lenders weigh in their credit decision.
Source: SBA 7(a) and 504 FOIA loan-level data, as of March 31, 2026. Disbursed loans only. See data methodology.
A 11.4% adverse-resolution rate against the national fitness center benchmark of 10.9% tells credit committees to scrutinize revenue projections and coverage assumptions closely on California deals in this class. A rigorous third-party feasibility study — built on documented demand, defensible pricing, and stressed coverage — carries meaningful weight in that underwriting conversation, particularly at an average loan size of $445,000 across 1,310 loans.
Every California fitness centers 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.
The national SBA gym feasibility study explains joins, attrition, opening-delay funding and eligibility. Its lending ledger benchmarks a California fitness file against 14,056 disbursed SBA fitness loans.
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 franchise concentration and boutique fitness density make competitive saturation analysis and attrition assumptions central to the membership model.
For a national view of this asset class, see our fitness center SBA feasibility overview, and read our related analysis in the fitness center lending research on our blog.
Public SBA and CDC program records, cited as program evidence
$4M SBA 504 building purchase through TMC Financing with 10 percent down
Franchise gym building purchase, 2020
Watsonville, Santa Cruz County
Fifteen-minute scoping call, written proposal inside one business day, firm fixed fee before you sign.
Book a MeetingOur SBA feasibility study consultants prepare gym, boutique fitness and recreation studies for lenders, CDCs and sponsors. See pricing, methodology or request a fixed fee quote.
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