"Magic" Loan Program helps Dentist Purchase her own Space

Dr. Yelena Ladyzhenskaya had been renting her 30 year-old dental office located on a secondary street for more than a decade when she decided to purchase her own space and become her own landlord.

She dreamed of a brightly-lit, newly-renovated office that would be visible to pedestrians and designed to her specifications. Owning her own space would not only eliminate the variable of paying monthly rent, but it would also allow her to expand, to update, to scale her practice and to create an asset that might become a source of income after she retired and provide her daughter with revenue in the future.

She couldn’t believe it when she discovered the U.S. Small Business Administration (SBA), 504 loan: For only $205,000 down, Dr. Ladyzhenskaya was able to purchase a $1.9 million ground-floor commercial condo on a busy street just four blocks from the space she’d been renting. She would remain in close proximity to her existing clients and be visible to passersby that might become new patients. The space would be nearly three-times the square footage of the one she was renting. In addition, the loan would provide $200,000 for new dental equipment and another $200,000 to design the office the way that she dreamed. 

Since opening her new space in January, 2018, Dr. Ladyzhenskaya has hired another dentist and is in-process of hiring two more. She’s added another hygienist, increased the hours of those already working for her and multiplied the number of patients her practice can handle by five-times (from 10/day to 50/day).

SBA helps small business owners like Dr. Ladyzhenskaya every day. Last year, in the New York District, SBA helped more than 100 small businesses move from tenants to landlords with the 504 loan program. Across the nation, SBA helped more than 6,000 business owners make similar transitions. 

Beth Goldberg, Director of the New York District Office of the SBA, said that the 504 loan program is powerful program that she wants more small business owners to know about. “What other program helps an entrepreneur purchase a commercial coop or condo space for as little as 10 percent down? The 504 loan can be used for real estate purchases, machinery and equipment purchases and to refinance existing debt under certain conditions. A lot of small business owners say that rents take too big a bite out of their bottom line—well here’s a way to purchase space and remove that variable from your operating plan.”

Visit SBA's online lending tool, Lender Match, to connect with a small business lender today.

 

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Company Name: 
Magic Touch Dental
Location: 
Brooklyn, NY