Assisted Living Home

How Can Assisted Living Service Centers Use SBA 504 Loan?

May 4, 2022 Category:
Assisted Living Home

Assisted Living Home

Do you plan on building or improving your assisted living facility? If so, you could get as much as $5.50 million from the Small Business Administration if you plan to implement green efficiencies for your senior assisted living center. It does not come with any limits to the overall project cost. Read on to know more about the loan for these facilities.

New Construction

A Small Business Administration loan can be used to do the following for your assisted living home.

  • Buy land for the building and recreational spaces around the structure.
  • Spend on labor and materials in relation to the project.
  • Invest in equipment that has a service life of at least 10 years and that you will use in the long term, which possibly includes elevators, bed lifts and emergency defibrillators.
  • Spend on essential infrastructural elements for your assisted living service, like patient contact systems, wheelchairs, and HVAC systems specialized to optimize the comfort of aging residents.

Renovation And Remodeling

As you renovate or remodel your existing facility, a Small Business Administration loan can also cover almost every facet of the real estate project, including the following.

  • Adding one more wing.
  • Remodeling assisted living home rooms to increase their accessibility for not only residents who have limited mobility but also the staff required to support those clients.
  • Expanding food preparation and service areas to accommodate more residents.
  • Building a rehabilitation facility associated with an existing piece of property or on your current campus.
  • Diversifying or expanding the forms of recreation that you offer to residents.
  • Adding more equipment units to accommodate an increasing resident population.
  • Expanding or adding medical services to make it less frequent for residents to visit the hospital.

Who Can Apply For An SBA 504-Type Loan?

Several forms of companies are eligible for this loan program. The program is an attractive option, especially for special-use property owners. Why? Because traditional lenders hesitate to fund those unique pieces of property and often necessitate the potential borrower to make at least a 40% down payment. The loan structure is also appealing to traditional lenders because their product represents just half of the overall project.

Almost every assisted living facility qualifies for this program as long as it meets the criteria, including being a for-profit operation in the US or a territory of the nation.

Share This Story, Choose Your Platform!