Chiropractor Plans for Retirement with FFC’s 504 Loan Program

Currently an authorized 504 borrower, Dr. R. G. Packo of Ponte Vedra Beach anticipates using additional 504 loans to provide him with retirement income and has chosen Florida First Capital Finance Corporation (FFC) to assist him in his long-term financing and retirement plans.

Dr. Packo has a thriving practice in Ponte Vedra Beach and, as his business expands over the next years, he plans to open additional locations. The 504 loan program gives him an affordable way to do just that. “Most traditional commercial loans require 20 to 30 percent down and offer only a 15-year payoff,” said Dr. Packo. “But, the 504 usually only requires 10 percent down and allows you to choose a 10- or 20-year payoff. That not only lowers the payments, but also can eliminate the debt more quickly.”

“When Chiropractic Physicians come out of school,” Dr. Packo reports, “they may have $100,000-$150,000 in student loans. Most go into private practice, which doesn’t give them the salary they’d get at a hospital so they can pay off their loans and start building their own practices.” His long-range financing and retirement plan allows him to operate multiple locations while helping other chiropractic physicians build their own practices.

One aspect of the 504 loan is that each business location must be occupied by the owner. To comply with this requirement, Dr. Packo will be the owner of each expansion location and new chiropractors will manage those offices from him under his guidance, training and oversight. Once each expansion 504 loan is paid off, he will sell the practice to the chiropractor at that office, but, Packo will retain ownership of the property. “The sale of the practices and the income from property leases is what will fund my retirement,” he explained.

“For doctors who want to buy or build new facilities, we can often offer the lowest-interest, most flexible loans now available to finance projects in the $125,000 to $8 million range. The purchase of equipment can also be included in the loan, which is a major advantage for doctors. Also, the 10 percent down doesn’t have to be in cash.” says Kristen L. Tackett, FFC Vice President, whose Jacksonville office serves Northeast Florida.

“According to many economists, long-term interest rates are under a great deal of upward pressure,” she continued. “We’re eager to help doctors reap the benefits of this 0pportunity to lock in fixed-interest loans at below-market rates.”