SBA Loans for Medical Practice
SBA 7a loans are an excellent loan for physicians who need financing for any of the following:
- medical practice purchase
- medical building purchase
- medical practice refinance
- medical practice expansion
- partner buyout of a medical practice
- medical equipment financing
Advantages of the SBA 7a loan for Physicians:
- Banks and lenders favor doctors since they are better credit risks than many other businesses and are typically unaffected by downturns in the economy.
- SBA Medical Practice loans are available with as little as 10% down, although 15% down may be a better solution since SBA requires collateral in the form of personal assets (typically anything with “land under it”) if you are only putting 10% equity into the practice. (Keep in mind the current physician/owner of the practice can take back some seller financing to keep the loan to value below 90%).
- Because of the SBA guaranty and a healthy secondary market, SBA 7a loans are one of the few types of commercial loans most banks and lenders feel comfortable doing at the moment.
More info on 7a’s: SBA 7a Loan
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this is great news for all small medical practices. Hope the bills pas this month, cross your fingers!