If you have a business in the healthcare industry and you want to grow or invest in it, Small Business Administration (SBA) loans could help you. SBA loans for healthcare practices offer affordable and accessible financing that is designed specifically for businesses like yours.
These loans can be a great opportunity for businesses wanting to expand, whether by investing in medical equipment, a larger clinic, or an existing practice.
What are the Benefits of SBA Loans?
SBA loans are issued by approved lenders and partially backed by the SBA. Because of this, they come with some borrower-friendly terms that make financing a feasible option for successful businesses.
Some notable benefits of SBA loans for those in the healthcare industry include:
- Long repayment terms (up to 25 years)
- Lower down payments
- Competitive interest rates
- Large loan amounts available ($5M for the 7(a) loan and $20M+ for the 504)
Why Healthcare Practices Are a Great Fit for SBA Loans?
Medical services, such as dentistry, chiropractic, and general medicine, are uniquely positioned to benefit from these SBA loan programs. These businesses often have good, predictable cash flow, long-term stability, and low risk of default, which is what lenders like.
Healthcare businesses, both solo practices and clinics with multiple providers, offer essential services that communities depend on. Because these businesses are in high demand and economically resilient, they are low risk to the SBA and our lenders.
How Healthcare Professionals Use SBA Financing?
The SBA 7(a) and 504 loan programs are common for medical practices, and their funds could be used for a variety of legitimate business expenses, such as:
- Purchasing or upgrading medical equipment
- Hiring staff, marketing, or other working capital and operating costs
- Expanding office space
- Acquiring an existing practice
For example, SBA loans can help a business owner buy new dental chairs or imaging machines they need to improve their company. Expanding to a larger location, which is often necessary when practices get bigger or merge, is also possible with an SBA loan.
Is My Practice Eligible?
Healthcare businesses must meet the SBA’s qualifications for a loan, which include:
- Having a strong cash flow and a demonstrated ability to repay the loan
- Possessing a strong credit score and history, for both the owner and the business
- Being a U.S.-based, for-profit business
- Operating the business for at least two years
- Never having defaulted on federal loans
Lenders want to extend loans to businesses that are financially stable, as this lowers their risk. A history of profitable operation demonstrates a track record of success that is attractive to lenders.
Contact BFG for Help Getting Your Medical Business an SBA Loan
If you are ready to invest in your business, SBA loans for healthcare practices can help you grow with affordable, long-term financing.
Business Funding Group LLC (BFG) is a professional loan packaging firm. We specialize in helping small businesses like yours secure the capital they need to meet their growth goals. Unlike banks, we do not just input numbers into a template. We take time to review your financials, offer advice on which loan program is best for you, and package your loan. Our team of experts has decades of experience with SBA loans.
Whether you are a solo practitioner or part of a group, we know how to position your practice for a successful application. Contact us today to discuss your eligibility and how SBA financing could help you begin growing your practice. You could also start the process by filling out our quick, online financing application form. We do not charge anything upfront, and you only pay a fee if your loan closes.
(917) 593-5013