In this article, you will learn how dental offices can benefit from the SBA 504 loan program.
There has never been a time in history when demand for dentists was stronger than it is today. Consumers are showing a much greater interest in taking care of their teeth, which includes everything from whitening treatments to crowns and permanent implants.
In 2021, the global market for dental services is expected to be worth $359.5 billion. Between 2022 and 2030, the market is expected to grow at a compound annual growth rate (CAGR) of 4.4%.
Dental services include the diagnosis, prevention, and treatment of dental disorders. Dentists and other dental professionals are the only health care workers who can do dental work.
Some of the main things that are causing the industry to grow are the rise of dental caries and other periodontal diseases, the improvement of dental technology, and the high demand for cosmetic and laser dentistry. The general public is also becoming more aware of dentistry as time goes on. Source: Grand View Research.
There are over 200,000 dentists in the United States. The vast majority of them (85%) are solo practitioners. The average dentist earns an annual salary of $175,840. Most dentists have a four-year degree in medicine or dentistry and must pass a state exam to be able to work.
Because of this, right now is an excellent time to build a brand new office or expand the one you already have. Making use of an SBA 504 loan can make expanding your dentistry business easier and more profitable.
These SBA 504 loans are made to meet the needs of a growing business. They can be used to buy land and buildings, build new ones, or buy important equipment like x-ray machines, teeth-whitening machines, and even more advanced equipment like computerized crown machines and 3D printers.
However, you are not permitted to use SBA 504 loans for operating capital. In the event that you find yourself in need of additional cash flow, it is possible that an SBA 7a loan, in conjunction with an SBA 504 loan, could be the best option for you.
What is the SBA 504 Loan Program?
The U.S. Small Business Administration (SBA) 504 Loan Program gives small businesses long-term loans with fixed interest rates that can be used to buy fixed assets for growth or improvement.
The program is available through Certified Development Companies (CDCs), which are nonprofit organizations that work with the SBA and private-sector lenders to provide financing to small businesses.
The goal of the SBA 504 Loan Program is to help the economy grow and create jobs by giving small businesses long-term, fixed-rate loans to buy fixed assets like land and buildings.
What are the benefits of the SBA 504 Loan Program for dental offices?
The SBA 504 Loan Program has many benefits for dental offices, such as low down payments, long-term financing, and fixed interest rates. The program can help dental offices get more patients, buy new equipment, or fix up their offices.
The SBA 504 Loan Program can help dental practices save money on interest payments and provide the security of knowing that their loan payments will not increase over time. The program also gives you the freedom to make the terms of repayment fit the needs of your business.
If you want to add another location or grow your existing dental business, talk to one of our experienced commercial loan advisors.