More clinics may qualify for small business loans
July 1, 1999 2 minutes read
More clinics may qualify for small business loans
Proposal could help 5,000 providers
A proposal being pushed by the U.S. Small Business Administration (SBA) would qualify some additional 5,000 health care providers — particularly offices and clinics operated by doctors — for government programs and services such as loan guarantees and management assistance based on the agency’s so-called size standards for classifying a small business.
Currently, the SBA has a one-size-fits-all standard that applies to the entire health care services industry, stating that an operation is considered "small" if its annual revenues are $5 million or less.
The current SBA proposal would preserve this standard for eight subdivisions within this overall health care services category, but increase the dollar figure for others. For example, a new upper limit of $7.5 million is being proposed for specialty outpatient facilities, health and allied services, and offices and clinics operated by medical doctors.
A $10 million threshold is being considered for skilled nursing care facilities, medical laboratories, and home health care services, while the SBA proposes to increase the size standard for most hospitals and kidney dialysis centers to $25 million.
The remaining sectors, including offices and clinics operated by dentists, chiropractors, opto metrists, podiatrists, health care practitioners, and doctors of osteopathy, would continue to operate under a size standard of $5 million. Nursing care facilities and dental labs would also remain at the $5 million level.
"Like so many parts of our economy, the health care services industry has changed rapidly in recent years," says SBA administrator Aida Alvarez. "The SBA is proposing new size standards that more accurately reflect these changes. The new standards will provide these growing firms with continued access to SBA’s small business development assistance, helping them succeed and serve their customers into the 21st century."
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