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Thursday, July 29, 2010

Q & A: 100% Financing for Medical Professionals

Q: 100% Doctor Financing, how does it work? Do you have an intake form or prequel form you would like to see? This is a special SBA loan program. Here's a flyer and our standard SBA loan application form with the checklist of documents needed to pre-qualify a loan request.

Please note that this program usually requires a doctor to come to closing with up to 10% of the total project cost (unless he/she can document they've already invested that much or have that much equity in the land) and then he/she is reimbursed after closing for most of that amount with "working capital".  So it ends up being at or about 100% financing but they may need at least 10% IN LIQUID ASSETS TO COME TO CLOSING WITH - DEPENDING ON THE SPECIFICS OF THEIR SITUATION.

Q: What do you mean reimbursed with working capital?  Is the 10% available as a line?  I can see some doctors using personal funds to qualify but interested in returning the funds to where it was taken from after closing. With this SBA loan program we can finance real estate acquisition, build-out, inventory, equipment and working capital. So, for example, if a doctor was opening up a new office and the TOTAL COST for all of the above mentioned items was $700,000, with a breakdown of :

$550,000 for real estate purchase

$40,000 for build-out

$15,000 for furniture and fixtures

$40,000 for equipment

$30,000 in inventory

$25,000 in working capital for 1st year salary for a receptionist / office assistant

The doctor would come to closing with $70,000 (10% of total cost of project) but get back $55,000 after closing to cover the cost of inventory and "working capital" to pay for the office assistant. The doctor ends up getting more than 100% of the real estate purchase financed and somewhere between 90% and 100% of TOTAL COSTS financed.

I hope that helps you better understand how the program works. Don't hesitate to call or email if you have any additional questions.

Tony DeCresie

Commercial Capital, Ltd.

Your #1 Source for Business & Commercial Loans

Office: 863-298-8900 Fax: 863-877-4456 Cell: 813-833-3132

Your #1 Source For Commercial & Business Financing

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