Economic Aid Act Information

The release of the Economic Aid Act stimulus plan puts you as a Healthcare Provider in a very strong position if you are considering commercial real estate ownership of a new facility; OR an existing property you are currently leasing for your practice. If you have even remotely considered property ownership, this may be the best time in the history of commercial lending to consider evaluating your options to purchase your office space.

CARR would love to help walk you through what ownership/expansion/relocation looks like. The constant is: CARR costs you zero dollars, and we can help put you in a position to own your practice’s real estate. This is a fantastic opportunity for you to grow your net worth; and puts your Practice in a better position for long-term stability in its location.

The below is a brief explanation we received from one of our lending partners regarding the benefits to our Healthcare Providers over the next 6 months.

How It Works

“Under normal circumstances, the SBA’s loan programs offer many advantages for small businesses trying to secure capital. With recent economic aid passed by Congress (Economic Aid Act), the benefits for small business owners are even better. Let us support clients with the new SBA loan enhancements, including: 

  • SBA will pay your principal and interest for up to three months up to $9,000
  • No SBA fees, subject to change based on additional guidance from SBA
  • Fully amortized/no balloons
  • Loans can include working capital to support your operations
  • Loans from $250K – $5M+, varies by product 
  • Loan terms 10 years for business acquisition, up to 25 years for real estate
  • No prepayment penalties for loan terms under 15 years

Loans that are approved between 2/1/21 and 9/30/21 will receive these benefits once the loan is fully disbursed, subject to availability of funds.” 

CASE STUDY: How One Doctor Increased Their Cash Flow by $2,000 / Month!

  • Recently, we were able to help one of our clients purchase the building they were renting; of which they only occupied 50%; and still had TWO years left on the lease
  • Our client engaged us and we approached the seller. We were able to show the seller why it made sense to sell this building now rather than waiting two years. This was due to the fact that our client was responsible for approximately 60% of the rental income on the building, and if our client relocated in 24 months – the value of landlord’s property was significantly decreased.
  • We connected our client with a Healthcare Specific lender who was able to finance 100% of this building (ZERO CASH OUT OF POCKET) 
  • Our client is receiving SIX MONTHS of principal and interest payments PAID by the SBA at a sub 4% interest rate; fixed for 25 years.*
  • Over $30,000 in SBA fees were waived as well.
  • Our client has tenant income on the property, and after closing – they will be cash flow positive (by +$2,000/mo) from buying the building vs. paying rent.
  • This was an absolute home run deal for our client. The lender said it was the best structured deal he has ever seen on a building acquisition in that state.

*This deal was completed before the SBA changed principle and interest from 6 months to 3 months.   The current guidelines (subject to change) are at 3 months of P&I.

Whether there is an opportunity for purchase or not, every Healthcare Provider should have a game plan as it relates to your real estate.