Can You Use an SBA 504 Loan for a Medical Office?
The medical industry is one of the fastest-growing in the nation when taken as a whole, which means that now is an excellent time to build your own medical office. The industry is expected to grow by 2.4% in 2018, with total revenue of $284.4 billion. An SBA 504 loan can allow you to break ground on your new office and begin serving patients.
An SBA 504 loan can be used for a wide range of needs. For instance, you can purchase real estate, either with an existing facility on it already, or with the goal of building your own facility. You can also use the funds from an SBA 504 loan to offset the single most expensive part of creating a new clinic – the equipment. X-ray machines can cost hundreds of thousands of dollars. Drug testing equipment can cost a great deal. CT machines, ultrasound machines, and other equipment can cost millions more.
However, understand that a 504 loan cannot be used as working capital, so if you need funding to keep the business running, you’ll also need to consider options like an SBA 7(a) loan.
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