The Situation: Financing a Specialized MRI for Neurological Care

Neurological chiropractor Randall Gates, DC, DACNB, owner of Gates Brain Health, Inc. in Reno, Nevada, sought to expand his neurological chiropractic practice by acquiring a wide-bore MRI full-body scanner. Dr. Gates wanted to enhance his practice’s capabilities to not only treat neurological conditions but assist in the diagnostic portion and early screening while opening the practice to individuals seeking full-body scans, as well. 

  • Niche Medical Practice & Equipment Challenges
    The specialized nature of Dr. Gates’ practice and the cost of the MRI equipment posed unique financing hurdles. 
  • Extensive MRI Build-Out Requirements
    Installing the MRI required significant construction work, including specialized shielding, which required careful planning, licensed and experienced contractors, and meticulous execution. 

The Solution: SBA 7(a) Loan And Expert Guidance From First Business Bank 

First Business Bank, an SBA-designated Preferred Lending Partner, provided a comprehensive SBA 7(a) loan to fund the MRI purchase, installation, build-out, and additional working capital. Along with the funds, our team spent time up front providing construction guidance and continued to provide expertise throughout the lengthy permitting process. 

  • Tailored SBA 7(a) Financing Structure
    The SBA 7(a) loan offers a 10-year term with no prepayment penalty, for all loan components, including equipment, installation, and build-out, provided more favorable repayment terms than typical three-year equipment loans. 
  • Flexible Disbursement and Repayment
    The loan structure permitted funds to be drawn as needed during construction. With interest wrapped into the loan, repayment would only begin after the business had begun recognizing the new income. This flexibility allowed Dr. Gates to manage cash flow effectively during the medical construction and MRI installation. 
  • Comprehensive Project Support
    First Business Bank’s SBA Lending team leveraged experience with construction lending to assist Dr. Gates throughout the construction process, starting from early conversations with potential general contractors. 
  • Collateral Flexibility
    Despite a collateral shortfall, First Business Bank’s SBA lending team structured the loan with less than 50% secured position, demonstrating confidence in the project's viability.