SBA Loans for Assisted Living Facilities in Kansas

The Small Business Administration offers powerful financing programs for assisted living facility owners and developers in Kansas. SBA 504 and 7(a) loans provide favorable terms, lower down payments, and competitive rates that make ALF ownership more accessible.

SBA Loan Programs Overview

SBA 504 Loan Program

The 504 program is ideal for real estate acquisition and construction:

Program Structure:

50% from conventional lender (first lien)
40% from CDC/SBA (second lien)
10% borrower equity (down payment)

Key Benefits:

Below-market fixed rates on SBA portion
Long terms (20-25 years)
Lower down payment than conventional
No balloon payments
Predictable monthly payments

Maximum Loan Amounts:

Standard: $5 million (SBA portion)
Manufacturing/Energy: $5.5 million
Total project: Up to $12.5 million

SBA 7(a) Loan Program

Flexible financing for various business needs:

Loan Features:

Up to $5 million
Terms up to 25 years (real estate)
Working capital included
Equipment financing
Business acquisition

Interest Rates:

Variable: Prime + 2.25% to 2.75%
Fixed rate options available
Rate based on loan size and term

Uses of Funds:

Property acquisition
Construction/renovation
Equipment purchase
Working capital
Debt refinancing
Business acquisition

Eligibility Requirements

Business Qualifications

SBA Size Standards:

Annual revenue under $8.5 million, OR
Fewer than 500 employees
For-profit business
Operating in the United States

Kansas-Specific:

Licensed by KDADS
Compliant with state regulations
Good standing with regulatory agencies

Owner Requirements

Personal Qualifications:

U.S. citizen or permanent resident
Good character (background check)
No recent bankruptcies
No federal debt delinquency

Financial Requirements:

Reasonable credit history (typically 680+ FICO)
Adequate equity injection
Demonstrated management ability
Relevant industry experience preferred

Property Requirements

Eligible Properties:

Adult Care Homes
Assisted Living Facilities
Memory care facilities
Senior housing with services

Property Standards:

Owner-occupied (504 program)
Meet building codes
Adequate condition
Proper zoning

Kansas SBA Resources

Certified Development Companies (CDCs)

CDCs administer the SBA 504 program in Kansas:

Growth Opportunity Connection CDC

Statewide coverage
Experienced in healthcare
Phone: (816) 235-6146
Website: gocdc.com

Kansas Certified Development Company

Regional coverage
Healthcare experience
Phone: (785) 234-2644

Great Plains Development Inc.

Multi-state coverage
Small business focus
Phone: (316) 683-4422

SBA District Office

Kansas City District Office

Address: 1000 Walnut Street, Suite 500, Kansas City, MO 64106
Phone: (816) 426-4900
Services: Loan assistance, counseling, resources

Wichita Branch Office

Address: 220 W. Douglas Ave., Suite 950, Wichita, KS 67202
Phone: (316) 269-6616

Preferred Lenders

Kansas banks with SBA Preferred Lender status:

Lender	Specialization	Contact
Commerce Bank	Healthcare lending	commercebank.com
Capitol Federal	Small business	capfed.com
Emprise Bank	Commercial real estate	emprisebank.com
Fidelity Bank	Regional expertise	fidelitybankkansas.com
Intrust Bank	Community banking	intrustbank.com

Loan Comparison

SBA 504 vs. 7(a)

Feature	SBA 504	SBA 7(a)
Max Loan	$5M (SBA portion)	$5M total
Down Payment	10%	10-20%
Terms	20-25 years	Up to 25 years
Rates	Fixed (SBA portion)	Variable or fixed
Working Capital	No	Yes
Prepayment Penalty	Yes (10 years)	Limited (3 years)
Best For	Real estate	Flexibility

When to Choose 504

Purchasing real estate
New construction
Major renovations
Long-term ownership planned
Want lowest fixed rate

When to Choose 7(a)

Need working capital
Smaller loan amounts
Want prepayment flexibility
Business acquisition
Equipment-heavy projects

Application Process

Step 1: Preparation

Gather Documentation:

Business plan
Financial projections (3-5 years)
Personal financial statements
Tax returns (3 years business and personal)
Bank statements (12 months)
Entity documents
Licenses and permits

Prepare Business Plan:

Executive summary
Market analysis
Management team
Operations plan
Financial projections
Use of funds

Step 2: Lender Selection

Finding the Right Lender:

Research SBA-approved lenders
Compare terms and experience
Check healthcare lending expertise
Evaluate responsiveness
Consider relationship potential

Questions to Ask:

Experience with ALF financing?
Typical timeline?
Required documentation?
Fees and costs?
Ongoing requirements?

Step 3: Application Submission

Complete Application Package:

SBA Form 1919 (Borrower Information)
SBA Form 1920 (Lender's Application)
Business financial statements
Personal financial statements
Tax returns
Business plan
Property information

Step 4: Underwriting

Lender Review:

Credit analysis
Cash flow verification
Collateral evaluation
Management assessment
Industry analysis

SBA Review (if required):

Eligibility confirmation
Credit decision
Loan authorization

Step 5: Closing

Pre-Closing:

Title work
Appraisal
Environmental review
Insurance requirements
Legal documentation

Closing:

Document execution
Funds disbursement
Recording of liens
Ongoing compliance setup

Costs and Fees

SBA 504 Costs

Fee Type	Amount
CDC processing fee	1.5% of CDC loan
SBA guarantee fee	0.5% of CDC loan
Funding fee	0.25% of CDC loan
Bank origination	0-1% of bank loan
Third-party costs	$12,000-$28,000

SBA 7(a) Costs

Fee Type	Amount
SBA guarantee fee	0-3.75% (based on size)
Lender fees	Varies
Packaging fees	$2,500-$5,000
Third-party costs	$8,000-$22,000

Third-Party Costs

Appraisal: $4,000-$12,000
Environmental: $2,000-$5,000
Legal fees: $4,000-$12,000
Title insurance: Varies
Survey: $2,000-$5,000

Interest Rates

Current SBA Rates (2026)

SBA 504 Rates:

20-year debenture: 5.50%-6.25%
25-year debenture: 5.75%-6.50%
Rates set monthly
Fixed for loan term

SBA 7(a) Rates:

Variable: Prime + 2.25% to 2.75%
Current range: 7.50%-9.00%
Fixed options: +0.50% to 1.00%

Rate Factors

Loan Size:

Larger loans = lower spreads
Under $50K: Prime + 2.75%
$50K-$250K: Prime + 2.50%
Over $250K: Prime + 2.25%

Term Length:

Longer terms may have higher rates
Fixed rates premium over variable

Kansas ALF Financing Examples

Example 1: New Construction

Project:

55-bed Adult Care Home in Johnson County
Total cost: $6.8 million

SBA 504 Structure:

Source	Amount	Rate	Term
Bank loan	$3,400,000	7.00%	25 years
CDC loan	$2,720,000	5.75%	25 years
Equity	$680,000	-	-

Monthly Payment: $42,000 Blended Rate: 6.44%

Example 2: Acquisition

Project:

42-bed existing facility in Wichita
Purchase price: $3.8 million

SBA 7(a) Structure:

Factor	Amount
Loan amount	$3,420,000
Down payment	$380,000 (10%)
Rate	8.25% variable
Term	25 years
Monthly payment	$27,300

Example 3: Refinance with Expansion

Project:

Existing 48-bed facility
Current debt: $2.6 million
Expansion: 12 beds
Total project: $4.8 million

SBA 504 Structure:

Source	Amount
Bank loan	$2,400,000
CDC loan	$1,920,000
Equity	$480,000

Tips for Success

Strengthen Your Application

Solid business plan - Detailed and realistic
Strong financials - Clean, organized records
Industry experience - Highlight relevant background
Adequate equity - More than minimum if possible
Good credit - Address issues proactively

Common Mistakes to Avoid

Incomplete applications - Delays processing
Unrealistic projections - Undermines credibility
Poor documentation - Raises red flags
Ignoring credit issues - Address upfront
Wrong program choice - Match needs to program

Working with Lenders

Be responsive - Quick turnaround on requests
Be transparent - Disclose issues early
Be organized - Professional presentation
Be patient - Process takes time
Be prepared - Anticipate questions

Post-Closing Requirements

Ongoing Compliance

Reporting Requirements:

Annual financial statements
Tax returns
Insurance certificates
Occupancy reports

Operational Requirements:

Maintain licenses
Meet job creation goals (504)
Owner-occupancy (504)
Proper use of funds

Loan Servicing

Payment Management:

Automatic payments recommended
On-time payment history
Communication with lender
Address issues promptly

Additional Resources

SBA Resources

SBA.gov - Official program information
SCORE - Free business mentoring
SBDC - Small Business Development Centers
Women's Business Centers - Specialized assistance

Kansas Resources

Kansas Department of Commerce
Kansas Small Business Development Center
NetWork Kansas
Local chambers of commerce

Next Steps

Ready to explore SBA financing for your Kansas assisted living facility? Our team specializes in SBA loans for senior care facilities throughout the Sunflower State.

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