Dr. and Mrs. Hahn purchased Rivertown Dental, a dental practice in Grand Rapids, MI, in November of 2014. After five years of leasing property to operate the business, the couple knew that the next step in their strategic plan was to find a space that Rivertown Dental could call its own. They got connected with a local realtor, found the perfect property, and made their way toward this next step. The only thing stopping them? Financing.
“We knew it didn’t make sense in our timeline to renew our lease again, so we started looking for property where we could have a place of our own. Being relatively new owners, we were not flush with cash, so we were trying to find creative ways to make this work financially. Before we knew it, things started falling into place.”
It was then that their local bank, United Bank, introduced Dr. & Mrs. Hahn to the Economic Development Foundation, where they secured an SBA 504 loan – a fixed-rate financing program with a low down payment and longer terms. “One of the biggest advantages to the SBA 504 loan program is the ability to put a loan together where you don’t have to come up with 20% cash down that we would have to for a commercial loan,” explained Dr. Hahn. “It made this next step much more feasible.” The couple was able to finance the purchase of land and construction of their new dentistry office with a 10% down payment, allowing them to preserve cash flow along the way.
The new dental office location brought two new advantages for Rivertown Dental, the first being better visibility to the public. “Our old office was kind of tucked away, but our new location is on a main road that is much more visible to the community,” added Dr. Hahn. This was important to Rivertown Dental, as they place a large focus on supporting their community through various sponsorships and donations such as the Michigan Dental Association’s “Donated Dental Services” program. In addition, the financing package allowed Rivertown Dental to invest in “Surgically Clean Air,” an air purification system that, unknowingly at the time, is recommended by the CDC for dentist offices operating throughout the COVID-19 pandemic.
Throughout the process, Dr. Hahn and his wife, Jill, have been amazed and extremely grateful for the team that has been supporting them along the way. Click here
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