We have all heard the old adage, “It takes money to make money.” And the same holds true for healthcare practices. However, capital isn’t always something that healthcare practitioners—both established and new—have readily at their disposal. Therefore, it can appear challenging to start or expand a practice, which can leave many healthcare pros scratching their heads and wondering what their options are.
In this regard, an SBA loan can prove helpful—and potentially easy to obtain with the right partner.
In this blog, the team at LenDRgroup Consulting will offer an explainer about what you need to know about SBA loans, how they are used in financing for healthcare practices, and some pros and cons.
An SBA loan is a loan for use by small businesses that is partially guaranteed by the government
on behalf of the Small Business Administration. In that regard, some of the risk is mitigated for the financial institution that is issuing the loan.
Ultimately, it is not the SBA who is responsible for doing the lending; rather it is the bank that has been approved by the SBA. And what this means is that if the borrower cannot pay the loan back, the SBA will cover the part of the loan that they guaranteed.
Here are the pros of SBA loans. They typically feature:
A healthcare practice can use an SBA loan for a wide range of business expenses, including:
Stating the obvious, SBA loans cannot be used for personal expenses.
Firstly, there can be a lengthy application process with an SBA loan and it can also be hard to identify the right lender to work with as different lenders have different internal rules associated with SBA loans.
Some additional hurdles include:
Even in light of those cons that were just mentioned, there is good news. The LenDRgroup Consulting team has years of experience helping healthcare practices apply for—and successfully obtain—SBA loans. Plus, because we work with multiple lenders and financial institutions, you will be able to avoid filling out multiple applications at multiple banks, streamlining the process for you and saving you time.
We welcome the opportunity to speak with you about your SBA loan needs. Reach out to our team today and schedule a consultation.