SBA Loan Eligibility Raised to $10 Million

Effective July 4, the Small Business Administration (SBA) will allow eligible borrowers to combine their 7(a) and 504 loan guarantees for up to $10 million. This is double the previous maximum eligibility amount. Under the new policy, qualified buyers who secure a 7(a) loan guarantee first may access up to $5 million through the 7(a) program and up to $5 million through the 504 program. This policy change could benefit healthcare facility buyers who use the 7(a) program to buy their healthcare practices and then use the 504 program to buy related real estate, equipment, or other long-term assets, such as:

• medical practices also buying their operating space,

• medical practice expansion through acquisition,

• medical practice equipment purchases,

• home care agency, new purchase or expansion,

• assisted living facilities, new purchase or expansion, and

• residential care homes, new purchase or expansion.

To read the SBA's new release, click here.