Ideas & Insights

Why Medical Practices Should Consider an SBA Loan image
Business 5/27/2020 9:24:35 AM

Why Medical Practices Should Consider an SBA Loan

Medical professionals educate patients about conditions, provide treatment recommendations, and discuss possible outcomes. As a bank, we work the same way: we offer a comprehensive, consultative approach to growing your medical practice by presenting different options and analyzing potential outcomes. Small Business Administration (SBA) loans offer our clients some terrific possibilities.

The Healthcare Industry is Eligible for SBA Loans

A common misconception is that medical practices cannot access SBA loans. This simply isn’t true. Let’s look at just one state as an example. According to the 2018 Colorado Small Business Profile from the U.S. Small Business Administration Office of Advocacy, 50.6% of healthcare and social assistance practices in Colorado are considered to be a “small business” and therefore eligible to consider an SBA loan. From an SBA lending standpoint, medical practices are often a perfect fit as they tend to be owner-operated and frequently include a commercial real estate component.

Although the SBA is widely known as a resource for start-ups, the majority of SBA loan funds actually go to established companies. A wide range of practices can benefit— from new partnerships all the way to mature offices that have existed for decades. Because of their robust features, SBA loans are one of the fastest growing financial products in the marketplace today.

Flexible Uses and Terms for Practice Expenses

SBA loans are structured specifically to offer lower down payments, more flexible terms, and longer repayment timelines than conventional loans. The lower monthly payments created by these options can help reserve cash to pay for initiatives to grow your practice such as hiring more employees, or purchasing equipment and real estate. The SBA 7(a) loan can fund a multitude of practice-related expenditures including:

  • Medical machinery and equipment

  • Practice acquisition expenses

  • Real estate/building purchase, construction, renovation

  • Debt refinancing

  • Working capital

  • Office furniture and fixtures

Benefits of a Preferred Lender Partner

Because we are designated as a Preferred Lender in the SBA’s Preferred Lender Program, we offer advantages that regular SBA lenders can’t provide. Our designation indicates a demonstration of high SBA loan volumes, expertise in SBA lending policies, and a successful track record. Our in-house approval system and streamlined processes result in more rapid decisions for your practice— speeding up loans and decreasing wait times.

Healthcare lending is one of our core competencies. We welcome the opportunity to determine if an SBA loan is the best structure to help your medical practice reach its goals. When you meet with us, one of our specialized healthcare advisors will listen to you, review your goals, and make side-by-side comparisons of different loan options and their projected outcomes. Learn more about our SBA program and team at https://www.sunflowerbank.com/SBALending