What are the differences between SBA vs. conventional loan products?

At MedTrust Capital Group, we provide the type of financing that will work for your practice’s bottom line. We can help you decide on SBA vs. conventional loans and we work to find the programs that will save you money, or help you expand securely.

SBA loans

Many independent healthcare practices take advantage of SBA loans. The Small Business Administration (SBA) operates several loan programs for startup and advanced-stage businesses. The first thing to know is that you don’t usually apply directly to the SBA for a loan, but to a local bank or lender that participates in the SBA loan program. Some of these loans provide long-term financing for ambitious real estate or manufacturing expansion programs, while others help business owners buy franchise outlets or start new businesses. The SBA requires its partner lenders to adhere to strict underwriting guidelines, so SBA-backed loans are not “easy money,” but they can be a great option for healthcare providers, especially those who want to own their own building.

SBA loans have a bad reputation for being paperwork-heavy and taking a long time. This if often the case with inexperienced lenders. MedTrust Capital Group’s 20 year history of financing ensures the complicated SBA process almost always goes smoothly.

Conventional loans

Conventional loans have competitive rates and terms that vary much more than SBA loans. Conventional lending standards are similar to SBA standards, but can require less paperwork (although not that much less). Conventional loans may charge higher fees and can require more down payment, but can offer much shorter term periods and sometimes lower monthly payments. MedTrust Capital Group specializes in analyzing a healthcare practice’s debt structure and accurately determining if an SBA loan or a conventional loan or a mix of the two will be the right financial decision for your practice.