Tap to get financing
SBA 504 Loans
SBA 504 Loans
Loan usesRequirementsDown paymentsRates and costsCalculatorApplication processCompare SBA loansSBA 504 RefinancingApplication ChecklistClosing ChecklistLoan AssumptionFrequently Asked Questions
Requirements Application process Calculator Blog
About
About usContact us
Get financing
Close sba504.loans is an independently owned and operated website and has no government affiliation. We are not the Small Business Administration and are not a lender. If you are trying to reach the SBA click here to be redirected.
Newly Published
Aug 26 at SBA 504 Loans
What Is SBA Form 159?
Aug 26 at SBA 504 Loans
What Is the Small Business Administration?
Aug 26 at SBA 504 Loans
What Is SBA Form 770?
Explore the Janover Network
Mar 24 at Multifamily Loans
The Best 3 Multifamily Loans for Affordable Housing in 2023
Mar 20 at Multifamily Loans
Multifamily Minute Reader Reflections: How Will Bank Failures Impact Multifamily?
Mar 17 at Commercial Real Estate Loans
Top 10 Commercial Real Estate Lenders of 2023
Was This Article Helpful?
SBA 504 Loan Guide
Last updated on Feb 19, 2023
2 min read

SBA 504 Loans for Medical Offices

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

Better Financing Starts with More Options Start Your Application and Unlock the Power of Choice. Click Here to Get Quotes →$1.2M offered by a Bank at 6.0%$2M offered by an Agency at 5.6%$1M offered by a Credit Union at 5.1%Click Here to Get Quotes

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.

We’re here to help you get the commercial financing you need. Simply fill out the form below for a risk-free consultation and a free SBA loan quote!

Related Questions

What are the eligibility requirements for an SBA 504 loan for a medical office?

The eligibility requirements for an SBA 504 loan for a medical office include a minimum credit score of 660, additional collateral, and extensive documentation. Documentation includes a year-to-date balance sheet, business tax returns for the last two years, business licenses, personal tax returns and resumes for 20%+ owners, and projected financial statements for 1-3 years. The loan size can range from $30,000 to $5 million, and the loan can be used for financing commercial real estate, equipment, and working capital. Loan terms for real estate are up to 25 years, for equipment up to 10 years, and for working capital up to 10 years.

What are the benefits of an SBA 504 loan for a medical office?

An SBA 504 loan can provide a number of benefits for medical offices. It can be used to purchase real estate, either with an existing facility on it already, or with the goal of building your own facility. It can also be used to offset the cost of expensive medical equipment, such as X-ray machines, drug testing equipment, CT machines, and ultrasound machines. Additionally, it can be used to pay for improvements to the land, such as drainage, paving, and parking areas.

However, it is important to note that an SBA 504 loan cannot be used as working capital, so if you need funding to keep the business running, you may need to consider other options, such as an SBA 7(a) loan.

What are the maximum loan amounts for an SBA 504 loan for a medical office?

The SBA 504 maximum loan amount is currently set at $5 million in lifetime dollars. However, if your business is a medical office, you can borrow up to $5.5 million in lifetime dollars. Additionally, if you decide to embark on energy-related projects that fall under the “go green” heading, you can borrow up to $16.5 million in lifetime dollars. Note that the SBA does not limit the amount you can borrow from a conventional lender. Banks and other lenders are free to contribute as much as you qualify to borrow. However, the SBA/CDC’s contribution is limited to the aforementioned amounts. In most situations, this comes to 40% of the loan’s value (up to the contribution cap that applies to your situation).

Source: SBA 504 Loans for Medical Offices and What Is the SBA 504 Maximum Loan Amount?

What are the interest rates for an SBA 504 loan for a medical office?

The interest rates for an SBA 504 loan for a medical office can vary depending on the lender. Generally speaking, the CDC lender can charge anywhere from 2.5% to 3% APR on the loan. However, the bank may offer more variable rates or related fees, which may range anywhere from 4% to 10%. It’s important to note that, while the rates from a traditional bank may be higher than expected, these commercial real estate loan rates are still considered better than those you will see elsewhere. It is also taken with the CDC loan, which is treated as a traditional property mortgage payment, with a fixed rate that can last 10, 20, or 25 years.

For more information, please visit SBA 504 Loans for Medical Offices and SBA 504 Loans and Commercial Real Estate: What You Need to Know.

What documents are required to apply for an SBA 504 loan for a medical office?

When applying for an SBA 504 loan for a medical office, you will need to provide the CDC and your lender with a wide range of documentation. The most commonly required documents include:

  • Business tax returns for the previous three years
  • Personal tax returns for the previous three years
  • Personal history statement
  • Personal financial statement
  • Personal budget analysis
  • Business financial statements for the previous three years
  • Business debt schedule
  • If you are applying for a loan for a hotel or motel, you will need:
    • Revenue and expenses breakdown for the past year (month to month)
    • Occupancy percentage and average daily rate information for the previous year (month to month)
    • Occupancy percentage and average daily rate for the area
    • Your hotel projection worksheet
  • Interim financial statement (signed and dated, and including balance sheet and income statement dated within the previous two months)
  • Accounts receivable aging (dated within the previous two months)
  • Accounts payable aging (dated within the previous two months)
  • Complete business plan
  • One year of financial projections with assumptions
  • Purchase agreement
  • Written estimate from a contractor if the loan is for construction
  • If this is a franchise, you will need a letter of intent from the franchisor and a FUOC and franchise agreement
  • If you are buying another business, also include:
    • The business owner’s tax returns for the previous three years
    • Interim finance statement dated within the last 60 days
    • Signed purchase agreement with cost breakdown, amendments, etc.
  • If you are using gift funds, you will need to provide a gift letter
  • Previous government financing schedule
  • Environmental impact questionnaire
  • Application certification an authorization
  • Documents pertaining to the ownership of other businesses and their finances (if applicable)
  • Copy of loan agreement and SBA authorization if you have another SBA loan
  • If you are refinancing a loan, you will need:
    • Copy of the original debt documentation
    • Your original purchase agreement, including settlement sheet,

For more information, please refer to this page.

Tags
  • SBA 504 Loan
  • SBA 504 Loans
  • SBA 504 Medical Offices

Getting a small business loan should be easy.⁠ Now it is.

Click below for a free, no obligation quote and to learn more about your loan options.

Get financing →
Janover logo

SBA 504 Loans is a Janover company. Please visit some of our family of sites at: Multifamily Loans, Multifamily Today, Commercial Real Estate Loans, SBA7a Loans, CMBS Loans, Apartment Loans, HUD Loans, HUD 221d4 Loan, HUD 232 Loan, HUD 223f Loan, HUD 223a7 Loan, SBA Express Loans, SBA 504 Loans, and OpportunityZones Help.

Janover Inc.

6401 Congress Ave
Ste 250
Boca Raton FL 33487

[email protected]

Site Information

Privacy Policy
Terms of Use

This website is owned by a private company that offers business advice, information and other services related to multifamily, commercial real estate, and business financing. We are a technology company that uses software and experience to bring lenders and borrowers together.

All users should perform their own due diligence and research. Nothing on this website is an offer or a solicitation for a loan. This website does not endorse or charge you for any service or product. None of the information on this site constitutes legal advice. We are not affiliated with the Small Business Administration (SBA). If you need to visit the SBA directly please click here: sba.gov

Click here for our Advertiser Disclosure.

Copyright © 2022 Janover Inc. All rights reserved.