I think the big questions to think about are whether or not to chase swimming scholarship money or whether or not to look for academic merit money at schools where there may be a walk on opportunity.
The hardest part is going to be finding swim scholarships for a “good” swimmer, or academic merit for a 3.7 UW/1200 SAT, with a business major, within the radius from home. I think you need to prioritize his wish list/financial aid needs and go from there. If you decide the finances aren’t a priority, that opens up other options. Ditto if the radius gets bigger.