Healthcare and Hospital Property Loans

Private healthcare facilities fill an essential gap in the American medical system. They often serve patients whose needs are too great for a private medical practice, but not severe enough to require hospitalization.

Whether you're a small surgical clinic looking to refinance your property, or a large outpatient center looking to acquire a new building, Commercial Real Estate Loans has the know-how to help you get the financing you need.

Healthcare Commercial Property Loan Terms

While specific loan terms vary based on the individual customer, in general, our healthcare facility loan terms include:

• Loan Size: $500,000+

• Loan Purpose: Loan can be used for property acquisition or refinancing (no business only-financing allowed)

• Loan Term: 3, 5, 7 and 10-year fixed-rate terms

• Amortization: 15, 20, 25 and 30-year options

• Leverage: 80% LTV allowance (subordinate debt allowed)

• DSCR: 1.30 minimum DSCR

• Credit Score Requirement: 660 minimum

SBA Loans for Healthcare Facilities

For many healthcare facility owners and operators, an SBA 7(a) loan can be a great choice. Unlike traditional healthcare facility financing, SBA 7(a) loans and their financial sibling, SBA 504 loans, can be used to finance heavy equipment, not just real estate. Plus, SBA 7(a) loans can also fund working capital, an essential need for many healthcare facilities. Despite their benefits, SBA loans do have relatively strict credit and debt requirements. So it's important to keep that in mind before applying for this type of financing. The basic terms for SBA 7a financing include:

• Loan Size: $30,000 - $5 million (some exceptions for smaller loans may be granted)

• Loan Purpose: Loan can be used for financing commercial real estate, equipment, and working capital

• Loan Term:

  • Real Estate: Up to 25 years

  • Equipment: Up to 10 years

  • Working Capital: Up to 10 years

• Credit Score Requirement: 660 minimum

• Collateral: Additional collateral is often required

• Documentation: Documentation for SBA 7(a) loans for healthcare facilities is extensive, and includes:

  • Year-to-date balance sheet

  • Business tax returns (for the last 2 years)

  • Business licenses

  • Personal tax returns and resumes for 20%+ owners

  • Projected financial statements (1-3 years)

Get Your Free Healthcare Property Loan Quote Today

Get your free financing quote by filling out the quick form below. We'll get right to work on sourcing quotes for you.