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SBA Express Loans for Doctor's Offices
Medical practices may need financing to purchase equipment, buy out a partner, and many other things. Find out how the SBA Express loan can help.
If you’re a doctor, chiropractor, or another type of medical professional who wants affordable financing to start or expand a medical practice, you may want to look into the Small Business Administration’s SBA Express loan program.
How Medical Practices Can Benefit From The SBA Express Loan Program
SBA Express loans can be used for a variety of business purposes, including equipment, working capital, and owner-occupied commercial real estate. Express loans typically offer up to 10-year terms for equipment and working capital, and up to 25-year terms for commercial real estate. Commercial lines of credit with up to 7-year terms are also available.
Many doctor’s offices and medical practices decide to use their SBA Express loan proceeds for purposes including:
Refinancing business debt: If you’ve already taken out a business loan to start or expand your medical practice, and you’re having a tough time paying it back due to high interest rates or other unreasonable loan terms, you may be able to use an SBA Express loan to refinance it.
Working capital: Doctors, chiropractors, physical therapists, and other medical professionals who are starting a practice from the ground up often need significant funds just to pay for their everyday expenses, such as rent, employee salaries, utilities, and marketing. Fortunately, SBA Express loans can provide up to $500,000 of working capital to help medical practices get started on the right foot.
Buying equipment: High quality medical equipment isn’t cheap, and if you need funds to purchase some, an SBA Express loan can help.
Partner buyouts: If one of your partners is moving or retiring, you might want to purchase their stake in the practice— and an SBA Express loan could be a great way to help you do so.
What are the eligibility requirements for SBA Express Loans for doctor's offices?
The eligibility requirements for SBA Express Loans for doctor's offices are the same as for any other business. To be eligible, you must be a for-profit business that operates in the United States, and you must meet the SBA's size standards. Additionally, you must have a sound business purpose for the loan, and you must be able to demonstrate that you have the ability to repay the loan. You can find more information about eligibility requirements here.
What are the advantages of SBA Express Loans for doctor's offices?
SBA Express loans can be a great option for medical professionals who don’t want to deal with a lot of paperwork, and want their funds fast, since Express loans can be funded in as little as 30-45 days. They offer up to $350,000 of working capital to help medical practices get started on the right foot, and can be used for purposes including equipment, working capital, and owner-occupied commercial real estate. Refinancing business debt is also an option.
What are the disadvantages of SBA Express Loans for doctor's offices?
The main disadvantage of SBA Express Loans for doctor's offices is that they are limited to $350,000, which may not be enough for some medical practices. Additionally, SBA Express loans typically offer higher interest rates than SBA 7(a) or SBA 504 loans.
For more information, please see the following sources:
How long does it take to get approved for an SBA Express Loan for doctor's offices?
It typically takes up to three days to get approved for an SBA Express Loan for doctor's offices. After approval, funds will typically be dispersed in as few as 20 days.
Source: SBA Express Loans Terms
What documents are required to apply for an SBA Express Loan for doctor's offices?
To apply for an SBA Express Loan for doctor's offices, you will need to provide the following documents:
- Business tax returns for the past three years
- Personal tax returns for the past three years
- Business financial statements
- Personal financial statements
- Business and personal credit reports
- Business license
- Business lease
- Business plan
- Resumes of all owners
- List of all owners
- List of all business debts
- List of all business assets
For more information, please visit https://sbaexpress.loans/blog/doctors-office-loans.
Other SBA Loan Options for Medical Practices
SBA Express loans can be a great option for medical professionals who don’t want to deal with a lot of paperwork, and want their funds fast, since Express loans can be funded in as little as 30-45 days. However, many medical professionals need more than $500,000; and if this describes you, you may want to check out the SBA 7(a) loan. SBA 7(a) loans can offer up to $5 million in funds to eligible borrowers, and can be used for purposes including equipment, working capital, and owner-occupied commercial real estate.
In contrast, if you’re looking for financing solely for commercial real estate, you might want to check out the SBA 504 loan. SBA 504 loans are offered in amounts of up to $5.5 million, and while they can’t be used for working capital, they do offer significantly lower interest rates than SBA 7(a) or SBA Express loans.