SBA 504 Loans Offer Funding Solutions for Nursing Homes
Nursing homes fall into the wider retirement communities segment of the economy, which continues to see significant growth and development. It is expected to generate $69 billion in 2018 alone, and there are currently almost 46,000 retirement communities within the United States. This makes nursing homes excellent candidates for the SBA 504 loan program.
Nursing Home Operators Can Utilize SBA 504 Loans for a Variety of Uses
An SBA 504 loan can offer nursing home operators the means to purchase a variety of important fixed assets. These include:
Real estate, buildings, and new construction financing for new facilities or additions to current ones,
New equipment for use in caring for residents, such as:
Beds, lifts, and other types of furniture
Other types of long-term equipment
In general, 504 loans cannot be used to finance short-term equipment, such as medical supplies like medication, bandages, or gait belts, and cannot be used to fund working capital for the daily expenses of the business. Existing loans can also be rolled into an SBA 504 loan so long as they meet the funding use requirements.
Nursing Homes Can Benefit From The 504 Green Loan Program
SBA 504 loans can also be used to help your facility go green and reduce your impact on the environment. In fact, businesses that reduce energy their energy use by 10% can take out up to $5.5 million per SBA 504 loan. In addition, they can take out multiple SBA 504 loans, as they are allowed $5.5 million per project, with a lifetime limit of up to $16.5 million in 504 loans.
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