Do you run a busy medical practice? To keep up with growth, you might need new equipment, updated software or additional employees. If you’ve accumulated high-interest debt, paying that off or refinancing could help save money and shore up cash flow. The key is to get the lowest cost funds with the longest terms. Here’s what you need to know about the “gold standard” – an SBA loan with low rates, long terms and very low monthly payments.
What is an SBA 7(a) loan?
An SBA 7(a) loan is the Small Business Administration’s most popular loan program. The SBA doesn’t fund loans, instead they guarantee a portion of the loan making them more attractive to banks because of decreased risk. Find in-depth information about SBA loans here. SmartBiz Loans offers SBA working capital loans and commercial real estate SBA loans from $30,000 to 5 million with repayment terms of 10 to 25 years through its online marketplace of preferred SBA bank partners.
SBA 7(a) Loan Rates
SmartBiz Loans offers SBA loans with rates from 6.50% - 8.75% calculated by Prime Rate plus 1.50% to 3.75%. You can locate the current Prime Rate here. As of August 2018, the current U.S. (Fed) Prime Rate is: 5.00%. SBA loan rates are variable, changing with the Prime Rate.
Why an SBA 7(a) Loan is the Best for a Medical Practice
Doctors are generally in a great position to qualify for low-cost funds due to steady income, high net worth and future earning potential. So what’s the right option for growth and savings? An SBA working capital SBA loan is generally the best bet with low rates, long terms and very low monthly payments.
SBA 7(a) Loan Use of Proceeds
One of the reasons an SBA 7(a) loan is the right choice to fund a medical practice is because of the many ways you can use the low-cost funds. Here are a few ways a medical practice can use an SBA loan to save money and expand.
- Medical equipment purchases - Your patients expect the most up-to-date equipment for diagnosis and treatment. Equipment costs can be huge and using an SBA loan for equipment financing can help keep your office on top.
- Basic Office Furnishings – A shabby or dingy waiting room probably won’t give new patients confidence in your practice. Use funds from an SBA loan to update your office.
- Software - Choosing the best medical billing and practice management software can be costly. Make sure you’re operating as efficiently as possible with up-to-date software.
- Personnel – As your practice grows, so does your need for office support. From nurses to front office employees, an SBA loan can support salaries and benefits.
- High Cost Debt Refinance – It’s not unusual for business owners to accrue high cost debt through short term loans, credit cards or lines of credit. Don’t let high payments crunch your cash flow. A low-cost SBA loan can help pay off that expensive debt.
- Commercial Real Estate Purchase – Are you making high rent payments every month? Doctors can build equity and increase their net worth by purchasing the building where they run their practice. SBA 7(a) Commercial Real Estate Loans have low rates, a 25-year term and low payments. Learn more here.
How to Apply for an SBA 7(a) Loan
Modern technology and machine learning have helped reduce the time and effort needed to qualify for an SBA loan. SmartBiz Loans can help you with your application and you may get funded in as fast as seven days after your loan application is completed.
Getting started is easy. Simply visit the SmartBiz Loans website here and create an account. Answer a few questions and know in about 5 minutes if you’re pre-qualified for a low-cost SBA 7(a) loan. Need guidance along the way? Our knowledgeable loan specialists are on hand to answer questions. Read what real SmartBiz Loans customers have to say about our people and process here.
Not Sure if You Qualify for an SBA loan?
Try the new SmartBiz Advisor™ online, educational tool to learn about how you can get your business SBA or bank loan ready before you apply – no cost involved. You can assess key criteria banks consider and where your business stands on each. Learn more about SmartBiz Advisor here.
* The information provided through SmartBiz Advisor, including the Loan Ready Score, is for educational purposes and is not the same as scores used by lenders for credit decisions. SmartBiz Advisor is not a financial or legal advisor as defined under federal or state law. Use of this information is not a replacement for personal, professional advice or assistance regarding your finances or credit history.