SBA 504 Business & Real Estate Loans
Financing for Healthcare Real Estate & Equipment
Our SBA 504 loan program provides healthcare professionals—including dentists, physicians, veterinarians, pharmacists, optometrists, med spa operators, and ambulatory surgery centers—with a low-cost way to acquire, build, or renovate medical real estate and purchase high-cost equipment. With low down payments, long-term fixed rates, and flexible terms, SBA 504 loans are an effective solution for medical practices nationwide.
What Is an SBA 504 Loan?
The SBA 504 loan program offers long-term, fixed-rate financing for major fixed assets that promote business growth and job creation. This includes the purchase, construction, or renovation of real estate, as well as the acquisition of essential equipment.
SBA 504 loans have a unique structure:
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First Lien Position Loan: Financed by a conventional bank, covering approximately 50% of the project cost.
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Second Lien Position Loan: Funded by a Certified Development Corporation (CDC), covering roughly 40% of the project cost.
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Borrower Contribution: The remaining 10% is provided as a down payment, allowing lower upfront costs and favorable terms.
Ideal Uses for SBA 504 Loans in Healthcare
SBA 504 loans are tailored for healthcare professionals seeking to:
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Purchase or Construct Medical Real Estate: Acquire or build a facility to fit your practice needs.
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Renovate or Expand Existing Facilities: Upgrade your space to improve patient care and meet regulatory standards.
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Acquire High-Cost Medical Equipment: Purchase diagnostic, imaging, or treatment equipment.
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Improve Property Infrastructure: Fund land improvements such as parking lots, landscaping, or drainage systems.
Note: SBA 504 loans cannot be used for working capital, inventory, or general operating expenses.
Key Benefits & Program Highlights
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Loan Amounts: Up to $12 million, including first and second lien positions
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Low Down Payments: Starting at 10% of the total project cost
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Long-Term Fixed Rates: Amortization periods of up to 25 years for predictable payments
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Nationwide Availability: Available across all 50 states
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Flexible Terms: Options for fixed, floating, and adjustable rates
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Fast Pre-Approval: Streamlined process for quicker funding
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Occupancy Requirement: Practice must occupy at least 51% of the property
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Property Flexibility: All property types allowed for eligible healthcare businesses
Loan Structure & Terms
First Mortgage (Conventional Bank Loan):
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Loan-to-Value (LTV): 50%
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Term: Up to 25 years, fully amortized
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Interest Rates: Fixed, floating, or adjustable
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Prepayment Penalty: Varies by loan agreement
Second Mortgage (CDC/SBA Loan):
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Loan-to-Value (LTV): 40%
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Term: Up to 20 years, fully amortized
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Interest Rates: Fixed-rate
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Prepayment Penalty: Applies for the initial 10 years
Why Choose US Medical Funding
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Healthcare Expertise: Specialized knowledge of medical, dental, and veterinary financing needs
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Tailored Solutions: Customized loan structures for each practice and project
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Fast & Efficient Process: Quick pre-approval and streamlined application
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Nationwide Service: Supporting healthcare professionals across all 50 states
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Comprehensive Support: Guidance from application to funding and beyond
Take the Next Step
Explore how an SBA 504 loan can help your healthcare practice grow. Our team of experts is ready to guide you through the process and secure financing for real estate acquisitions, expansions, renovations, or essential equipment purchases.