NEW JERSEY · NAICS 713940
New Jersey fitness projects compete in dense trade areas where membership math and concept differentiation drive the underwrite. Studies translate membership ramp, retention, ancillary revenue, and franchise terms into projections that lenders can underwrite, and reconcile build-out and equipment capital.
FEASIBILITY TRIGGER
Fitness projects are projection-based; membership-model projections, franchise terms, and trade-area saturation drive study requirements.
Between FY2010 and FY2026, SBA lenders approved and disbursed 481 7(a) and 504 loans for fitness center projects in New Jersey, totaling $259.2 million in approved financing at an average of $539,000 per loan. New Jersey ranks #8 of 38 states tracked for fitness center SBA lending volume and accounts for 4.3% of national fitness center SBA dollar volume. 96.9% of these loans were made under the 7(a) program, the remainder under 504. 102 loans have been approved since FY2024.
| Disbursed loans (FY2010–FY2026) | 481 |
| Approved volume | $259.2 million |
| Average loan size | $539,000 |
| 7(a) share | 96.9% |
| Approvals since FY2024 | 102 |
| State rank by loan count | #8 of 38 |
Among the 322 seasoned loans in this segment (approvals FY2010–FY2021), 12.1% 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 12.1% adverse-resolution rate against the national fitness center benchmark of 10.9% tells credit committees to scrutinize revenue projections and coverage assumptions closely on New Jersey 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 $539,000 across 481 loans.
Every New Jersey 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.
New Jersey 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 matters where North Jersey land and improvement costs run with the metro New York market. 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.
Dense suburban and metro-core trade areas concentrate competition, which is why saturation and conversion analysis carry the New Jersey underwrite.
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.
Compare neighboring markets: New Hampshire, New Mexico, Texas.
Public SBA and CDC program records, cited as program evidence
$4M SBA 504 building purchase through TMC Financing with 10 percent down
Franchise building purchase, 2020, national program evidence
Watsonville, Santa Cruz County, California
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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