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If you’re considering opening a veterinary office, you picked a flourishing industry.
While pet ownership has always been popular, it underwent a growth spurt during the pandemic. More than 23 million American households – nearly 1 in 5 nationwide – adopted a pet during the pandemic.
Thanks to that growth, 70% of U.S. households (90.5 million homes) owned a pet as of 2022, with dogs leading the pack by almost 2 to 1 over cats, horses, and saltwater fish.
An SBA loan for a veterinarian can be used for buying medical equipment, office furniture (waiting room chairs and tables, desks, examination tables, etc.), refinancing debt, expanding, or even purchasing a competitor’s location.
Benefits of being a veterinarian
The biggest benefit of being a veterinarian is helping animals and the families who love those animals. It is a gratifying career emotionally.
A veterinarian also is well-rewarded financially for their efforts. Veterinarians earn an average annual salary of over $100,000, with the top 10 percent making over $150,000 yearly.
How to obtain financing to open, expand, or buy a veterinary office
If you’re looking for veterinary practice financing, consider applying for an SBA loan. The various loan programs offered by the Small Business Administration can help provide the financing you need to set up your practice.
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 realtor loans include the SBA 7(a) and Express loans.
SBA 7(a) loan for buying a veterinary office
The 7(a) is the preferred SBA loan for veterinarians. You can use the funds made available through this program to purchase equipment and furniture, expand your current location, open new locations, or even purchase a competitor’s office.
If you own an existing veterinary office 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 veterinarian is $5 million. These term loans 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 veterinarians
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.
If approved, the funds can be utilized for equipment, furniture, and supply purchases, working capital, and real estate. 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 veterinarian loan
Access our network of SBA lenders that includes leading nationwide banks, credit unions, and other financial institutions. Our lending partners are experienced handling applications for veterinarians, so they will diligently pursue your opportunity.
There are countless SBA approved lenders that are ready to offer you a realtor SBA loan. These are just some of the top lenders:
| Rank | Bank | City | State | # Loans | Avg Loan | Avg Int |
|---|---|---|---|---|---|---|
| 1 | Live Oak | Wilmington | NC | 175 | $1,358,891 | 5.8% |
| 2 | Wells Fargo | Sioux Falls | SD | 60 | $798,202 | 6.3% |
| 3 | United Community Bank | Blairsville | GA | 48 | $1,273,654 | 6.3% |
| 4 | Compass Bank | Birmingham | AL | 47 | $1,181,572 | 5.3% |
| 5 | Firstrust Savings Bank | Conshohocken | PA | 37 | $1,227,765 | 6.1% |
| 6 | Pacific Western Bank | Beverly Hills | CA | 24 | $1,377,517 | 6.2% |
| 7 | JPMorgan Chase Bank | Columbus | OH | 22 | $275,941 | 6.5% |
| 8 | U.S. Bank | Cincinnati | OH | 19 | $397,132 | 6.6% |
| 9 | Huntington Bank | Columbus | OH | 13 | $428,362 | 6.6% |
| 10 | M&T | Buffalo | NY | 12 | $82,833 | 6.8% |
| 11 | Zions Bank | Salt Lake City | UT | 11 | $186,636 | 7.3% |
| 12 | United Midwest Savings Bank | De Graff | OH | 10 | $707,550 | 6.9% |
| 13 | First Home Bank | Seminole | FL | 9 | $191,000 | 7.3% |
| 14 | First-Citizens Bank & Trust | Raleigh | NC | 9 | $1,023,556 | 6.2% |
| 15 | North Valley Bank | Zanesville | OH | 9 | $1,001,944 | 6.3% |
| 16 | TD Bank | Wilmington | DE | 9 | $323,444 | 8.1% |
| 17 | First Financial Bank | El Dorado | AR | 8 | $552,375 | 6.7% |
| 18 | Mid Penn Bank | Millersburg | PA | 8 | $1,268,413 | 6.0% |
| 19 | Banco Popular de Puerto Rico | San Juan | PR | 7 | $150,186 | 8.8% |
| 20 | Eastern Bank | Boston | MA | 7 | $88,429 | 9.5% |