Should I go for a conventional or SBA loan for my veterinary hospital?

December 19, 2018
Gary I. Glassman, CPA
Gary I. Glassman, CPA

Gary I. Glassman, CPA, is a member of the Veterinary Economics Editorial Advisory Board who has worked exclusively with veterinarians for more than 20 years. He specializes in accounting, tax planning, and practice transitions and is a partner with Burzenski and Co. P.C. in East Haven, Conn.

Fixed interest rates, extended terms of payment ... uh, maybe we'd better leave this to the expert.

As a fledgling small business, there are two primary types of financing for which you're eligible: a conventional loan and a Small Business Administration (SBA) loan. HospitalDesign360 speaker Gary Glassman, CPA, says both types have their perfect borrower.

Let's break down the differences between the two.

Gary Glassman can set your finances straight

So you really want to increase profits?

Your new veterinary facility is a revenue generator

IRS rules for veterinary employee discounts (of course there's such a thing)

Glassman starts with a conventional loan. He says they:

> Require a larger down payment (usually 20 percent)

> May be subject to upfront fees

> Are more eligible for fixed interest rate

As for SBA loans, he says they:

> Need smaller down payment (no more than 10 percent)

> Can feature an extended term of payment (up to 25 years)

Still with us? Good.

Glassman says both types of loan have their place and that you should look into what works best for you, offering this caveat:

"If you fit the need of a conventional loan, then you don't necessarily want to go for an SBA loan unless some of the other criteria makes sense for you," he says.

Watch the video for more.

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