Top lenders for Nursing Home SBA loans

Last update: Jun 22, 2024

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Top Nursing Home Lenders

RankSBA LenderLender CityState# of Loans Avg LoanAvg Rate
1Live OakWilmingtonNC15 $1,898,0009.8%
2Celtic BankSalt Lake CityUT15 $1,436,01310.4%
3Pinnacle BankMorgan HillCA9 $1,341,55610.1%
4Noah BankMiamiFL7 $817,85712.0%
5Harvest Small Business FinanceLaguna HillsCA7 $1,213,60010.5%
6Newtek BankMiamiFL7 $817,85712.0%
7Huntington BankColumbusOH5 $123,60010.2%
8Gesa CURichlandWA5 $1,201,60010.2%
9Commonwealth Business BankLos AngelesCA5 $1,188,0009.7%
10Byline BankChicagoIL5 $1,962,00010.5%
11Umpqua BankRoseburgOR5 $990,10011.6%
12Readycap Lending, LLCBerkeley HeightsNJ4 $604,15012.1%
13US Metro BankGarden GroveCA4 $1,651,25010.2%
14Wells FargoSioux FallsSD4 $106,12512.6%
15America First FCURiverdaleUT4 $2,997,0007.0%
16Bank Five NineOconomowocWI3 $987,5009.8%
17Banco Popular de Puerto RicoSan JuanPR3 $108,30012.7%
18Hiawatha National BankHager CityWI3 $889,0009.3%
19Wallis BankWallisTX3 $3,346,0009.8%

Recent Nursing Home Loan Activity

YearQtr# of Loans Avg LoanAvg Rate*
2024116 $627,05610.6%
2023419 $916,37910.8%
2023324 $714,45411.1%
2023212 $1,027,10010.2%
2023118 $1,121,61110.4%
2022413 $416,9779.1%
2022314 $914,7007.3%
2022215 $1,194,1406.0%
202216 $511,5005.6%
202145 $985,0006.1%
2021316 $1,485,9505.2%
202128 $1,507,1754.9%
202115 $584,5806.6%

* Note that most SBA loans are variable-rate loans. The rates listed above is the initial interest rate at loan closing. Variable-rate SBA loans fluctuate by the fed funds rate set by the Federal Reserve.

The nursing home industry continues to grow. With 10,000 Baby Boomers turning 65 every day, America’s population continues to age, and nursing homes continue to fill up their beds.

The high cost of home care has also helped the nursing home industry. The price differential between the two is not nearly as substantial as it used to be, and many families are opting for nursing home care because of the physical and emotional stress of being a family caregiver.

An SBA loan can help get your nursing home off the ground. It can be used to purchase land, buy equipment and supplies, refinance debt, or even purchase a competitor’s nursing home.

Benefits of owning a nursing home

The biggest benefit of owning a nursing home is the potential for very high revenue. The average annual cost of a semi-private room in a nursing home is $98,000, and over $105,000 for a private room. Multiplied by the number of rooms in an average nursing home, you can see how substantial a nursing home’s annual revenue can be.

The nursing home industry is also very gratifying. Nursing home personnel enjoy knowing the difference they’re making in seniors’ lives and go home each day knowing that nursing homes provide a very valuable service as people age.

How to obtain financing to open, expand, or buy a nursing home

If you’re looking for nursing home financing, consider applying for an SBA loan. The various loan programs offered by the Small Business Administration can help provide the funding you need to set up your business.

The SBA is a government agency that doesn’t lend you the money directly. Instead, it guarantees a significant portion of your loan. That lowers the risk profile for SBA’s lending partners, which include conventional banks and financial institutions, so they’re more willing to approve loan requests.

You also must put significantly less cash or equity down to qualify with an SBA loan. And, with an SBA loan, no covenants or collateral is required.

The most common SBA nursing home loans include the SBA 7(a) and Express loans.

SBA 7(a) loan for starting or buying a nursing home

The 7(a) is the preferred SBA loan for nursing homes. You can use the funds made available through this program to purchase property, expand your office, open a new office, or even purchase a competitor’s company.

If you own an existing nursing home and want to buy out a partner, you can utilize the funds from an SBA 7(a) loan for that purpose.

The maximum SBA loan for a nursing home is $5 million. These term loans can be as long as 25 years for purchasing property and are generally repaid with monthly payments that include interest.

The payment stays the same for fixed-rate loans since the interest rate is locked in. However, for variable rate loans, it’s up to the lender to request a different payment amount if the interest rate changes.

SBA Express Loans for nursing homes

SBA Express Loans are a part of the agency’s 7(a) loan program. Up to $500,000 can be borrowed under an Express loan. The approval times are typically much faster for these loans.

Express loans over $25,000 have a collateral requirement. The SBA usually responds to Express loan applications within 36 hours.

The lenders ultimately make all eligibility and credit decisions. The market prime rate plus 4.5-6% interest is applied with repayment terms of up to 10 years.

How to apply for an SBA nursing home loan

Access our network of SBA lenders that includes leading nationwide banks, credit unions, and other financial institutions. Our lending partners are experienced in handling applications for nursing homes, so they will diligently pursue your opportunity.

There are countless SBA approved lenders that are ready to offer you a nursing home SBA loan. These are just some of the top lenders:

  Find me a nursing home lender!