Are you ready to purchase a commercial condo for your medical practice, but don’t have hundreds of thousands of dollars to invest?
You’re in luck. For new and growing medical practices, there are a variety of commercial loans available to help you get your practice up and running, or to help a growing practice thrive in a brand new space.
The three most popular types of commercial loans for medical practices include SBA 504 loans, SBA 7(a) loans, and loans from private lenders.
SBA 504 loans help medical professionals purchase condos by facilitating partnerships with private lenders.
With this type of loan, you’ll put down 10% of the purchase cost of your condo, a private lender will provide 50%, and the SBA will cover 40%.
With a 7(a) SBA loan, the Small Business Administration issues two separate loans to you, the lender. These two loans have different terms and may have different interest rates, but together add up to 90% of the cost of purchasing your condo. Just like with the 504 loan you are responsible for a 10% down payment.
Private lenders also have options for financing your condo purchase with a commercial loan.
Where SBA loans have fixed loan terms and rates, a private lender may be able to offer more flexible payment terms and variable interest rates.
Where SBA loans have fixed loan terms and rates, a private lender may be able to offer more flexible payment terms and variable interest rates. Additionally, private lenders may finance your loan as an investment, where the SBA will usually only lend to owner-occupied practices.
Remember, every medical practice is different and only you can decide which type of commercial loan is right for you!
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