SBA Medical Practice Loans
SBA 7a loans are excellent loans for physicians in need of medical practice financing for any of the following:
- medical practice purchase
- building purchase, refinance or construction
- medical practice refinance
- medical practice expansion
- partner buyout
- equipment financing if rolling equipment into larger loan
SBA lenders offer medical practice financing for most practice types as well as physical therapy practices and pharmacies and they have a special affinity for dentists and veterinarians. Some will also finance successful chiropractic practices (especially those that offer medical care) and some will finance concierge practices as well as functional medicine.
100% financing is available for existing practices that are expanding, moving or renovating.
Loans are available for practice, equipment and building financing. Some lenders will work off of your projected income for the new location, while others will only make the loan if your existing practice and your historical cash flow is enough to service the proposed debt. New or existing buildings can also be financed and ground up construction is possible.
Additionally, it is also possible to get financing for a new practice IF you can show that you have been operating as a separate entity within another practice. For instance, we recently worked with a doctor who was part of a 3 doctor practice and each had separate patients and each could provide a separate P & L and production reports, so even though the doctor was not on her own we were able to show that she was independent and therefore eligible for 100% financing.
SBA Medical Practice financing loans for an existing, profitable practice without real estate are available for up to 10 years with as little as 10% down up to a loan amount of $5 million.
Advantages of the SBA 7a loan for Physicians:
- Banks and lenders favor doctors since they are typically better credit risks than many other businesses and are typically unaffected by downturns in the economy.
- Loans collateralized by real estate are available with zero down.
- SBA allows flexible sources for down payment.
- Construction money is available for existing practices with zero down and for startups with a down payment of at least 10%.
- Because of the SBA guarantee and a healthy secondary market, SBA medical practice loans are one of the few types of commercial loans most banks and lenders will do in almost any economy.
Please click here for more detailed information about SBA financing for doctors.