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 up to 3 months of loan payment incentives, as above.
In plain English, that means you can miss your first 3 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 deadlines for the above programs is until the end of September 30, 2021. You can read more details about this in our updated post – Looking to Buy a Chiropractic Practice in 2021? SBA Loan Updates & Incentives.
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!