Immune to Rate Hikes, 504 Loans Help Make Healthy Medical Practices

Financial health is as important to a medical professional as physical health is to his/her patients. The more cash in the bank and the lower the loan payment (especially if the rate is fixed), the better a practice can serve its patients. Strong financials are just as important to a medical practice as they are to any business.

Conventional loans for new and expanding medical/dental offices can require up to 30% down. Even for a thriving practice, coming up with that much cash can be a sizeable barrier to overcome. However, the typical capital outlay for both hard and soft costs when using the SBA 504 program is just 10%.

Medical professionals around the state are finding that they can save needed working capital when financing the purchase and construction of new offices when they work with us to obtain a 504 loan to meet their capital financing needs. Borrowers are often surprised to hear that we can offer the lowest-interest, most flexible loans available in the $125,000 to $5 million range.

FFCFC is a private nonprofit organization which offers the SBA 504 loan program in conjunction with the Small Business Administration and lenders throughout the state. The 504 portion of the loan is a 20-year, fixed interest rate loan with rates that are usually well below market rates. Combined with financing from a commercial lender and a 10 percent investment by the borrower, a 504 loan ends up costing less for a medical/dental practice than a regular commercial loan – up to 20% better than conventional financing.

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