Chiropractors looking to purchase a practice will want to take note of how new SBA Loan Incentives will benefit chiropractic practice buyers in 2021 and beyond. Here’s why:
The recently passed federal stimulus package signed into law at the end of December 2020 contains many benefits designed to continue the Coronavirus relief efforts put into place last year – including PPP Round 2 for chiropractors, EID loans and much more.
But the subject of this post is to focus on how new SBA Loan Incentives will benefit chiropractic practice buyers in 2021 and beyond. Here’s a quick look:
How New SBA Loan Incentives Will Benefit Chiropractic Practice Buyers in 2021
As part of the recently passed 2021 Consolidated Appropriations Act federal stimulus package, there are several ways that borrowers will benefit.
These incentives are available for both the SBA 7(a) and the SBA 504 Loan Programs and include:
- The SBA will make borrowers’ first six payments for new SBA 504 real estate loans issued after February 1, 2021
- The SBA will make borrowers’ first six payments for new SBA 7(a) business purchase loans issued after February 1, 2021
- The SBA will make borrowers’ first six payments for new Microloans issued after February 1, 2021
- Buyers who are seeking to purchase BOTH a business and the real estate will be able to take advantage of this through a combination loan that includes the same above SBA benefits. So for example, if you are looking to buy a chiropractic practice and the building (real estate) that the business is currently located in, you would still be eligible to receive the 6 month loan payment incentives, as above.
In plain English, that means you can miss your first 6 months of loan payments — without penalty – because the SBA will make these payments on your behalf!
To clarify further, the SBA will cover both principal and interest payments for 7(a), 504, and Microloans programs!
MORE Ways the SBA Will Incentivize Your Loan to Purchase
Those looking to buy a chiropractic practice will find that the new SBA Loan Incentives will benefit chiropractic practice buyers in 2021 in more ways than the just the 6 month loan repayments (although that certainly is a nice benefit). For example:
- All SBA lender and borrower fees are waived for new 7(a) and 504 loans (this feature can save you up to an additional 2% on loan fees)
- Higher loan guarantee limits (this translates into less risk for the lender and better chances at obtaining a loan approval for the buyer!)
- Reciprocity for refinancing between 7(a) and 504 loans has been created
- A new 504 Express Loan Program has been established(to increase the speed of the loan application process)
Details and Deadlines
The details of the above programs are still a little fuzzy in terms of the deadline to apply for these new loan incentives and benefits.
Some media outlets have reported that the timeline to take advantage of these benefits is for new loans issued between February 1 and September 30, 2021. Others are reporting benefits lasting until October 1, 2021 – while still others are firm on the start date (Feb 1) but less clear on the end date. With over 5500 pages in the newly released bill, it’s no wonder all the details are not exactly nailed down!
Despite the lack of agreement on deadlines, if you are looking to borrow funds to purchase a chiropractic practice, one thing is abundantly clear —
For loans issued starting February 1, you will have access to MANY more benefits and incentives previously unavailable!
NEXT STEPS (And More!)
The next step is simple – if you want to take advantage of the new SBA Loan Incentives that benefit chiropractic practice buyers in 2021 – you should apply or start shopping NOW!
And to add some icing to the cake –
Interest rates are at a historical low…
Downpayment requirements are still at a record low…
This could be a perfect opportunity for you to buy a chiropractic practice.
If you haven’t found one, we’d love to help – check out our current listings of chiropractic practices for sale here!