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COVID-19 Nursing & Medical Clinic Loans: Coronavirus Loans For Healthcare Facilities

SARS-CoV-2 Nursing and Staffing Loans

With the recent outbreak of the Coronavirus, many healthcare-related companies are in search of nurses, nurse practitioners and traveling nurses to help staff up their medical facilities. But, as is always the case with staffing, it requires having capital to hire these nurses. In this article we will take a look at the financing options available to health care facilities to help them hire nurses during this Coronavirus (SARS-CoV-2, COVID-19 virus) pandemic.

Quick-jump to the following sections:

Nurses are the glue that holds a patient’s healthcare together and are more critical to the healthcare industry than they get credit for when compared to doctors. This is especially true with the recent outbreak of SARS-CoV-2 (also known as COVID-19, which leads to the Coronavirus). Their approach to medicine may differ from other health care providers as they practice many specialties with different levels of authority and their public image generally takes on the role of a caregiver. However, image aside nurses combine physical science, social science, nursing theory, and technology to care for their patients. Today, the nursing industry is expanding on their philosophies and measures to treat individuals in a plethora of ways, that are improving the lives of people in need. Moreover, future nurses can look forward to their demand to grow by 36% in need of RNs in hospitals by 2020. Plus, just in 2018 alone, 581,500 new RN jobs were created with much more positive growth to come.

Therefore, future trends happening in the nursing industry are influenced by the increased cost of healthcare, changes in federal and state regulations, and customer care to name a few. So as the cost of healthcare increases, patients are unable to get the level of care needed to prevent chronic illnesses in severely ill patients and diseases from developing. Consequently, this leads to an increase in extremely ill patients and higher hospital bills as well as increased health care costs. Changes in healthcare regulations are bringing issues as well. In particular, dealing with patient care as they are worried about not having managed care covered, resulting in them not getting the same level of treatments that a person with traditional insurance would. Nurses should be aware of this to give their patients adequate treatment they deserve. Another challenge for nurses is the increasingly complex needs of the population, so nurses are beginning to learn interdisciplinary skills. Nurses are now handling everything from dental disciplines to social issues.

Additionally, there is a trend of nurses working beyond their retirement age. With the recent nursing shortage, this became apparent. Studies speculate that this is caused by the latest recession which laid off numerous people. As a result, nurses are feeling either more secure in their jobs or simply working past the retirement age. The next trend is creeping up in just about every industry which is the reality that consumers across the board are becoming more informed. So when it comes to health, consumers are more educated about their health than ever before and understand how nutrition and exercise play a huge role in retaining longevity and preventing diseases. Now, nurses must be able to take in this information to communicate with more educated consumers. Nurses need to be more informed about the changes in demographics as well. Nowadays, people are living longer, and the international community in the United States has also increased. What has grown with it is the chronic diseases forcing nurses to figure out new ways to combat the ailments in unique or special ways. Thus, understanding the needs of a diverse and aging population is a must for today’s nurses.

Currently, we are also in the age of technology—another trend affecting most industries. Hence, nursing like most healthcare professions is embracing technological advantages. Nurses have had to educate themselves to use these devices to improve their patient care. Some gains for nurses using these devices have benefited from the reduced administration time and increased accuracy in treatment and medical records keeping. Nurses are now expected to look up treatment options when necessary, use computer technology to obtain patient information, and save their data. Other ways this trend has helped nurses and healthcare professionals across the board are technologies ability to reach out to those who were unable to commute to a hospital or other care facility. Nurses can provide these people with medical information and prescriptions. There are even toll-free numbers to contact nurses through their insurance companies to ask medical questions, reducing the number of emergency room visits each day. Lastly, advances in scientific research are on the rise too. With the increase in nursing scholarships in research, it has lead to better patient care and enhancement with the way patients experience treatment. Conclusively, the nursing profession is undergoing many advancements that are making their jobs much more efficient, allowing more time with the patients to give the best care possible.

Types of Coronavirs & COVID-19 Nursing Loans

As medical and healthcare facilities see and influx of patients they will need to hire additional staff to prevent being overwhelmed. Below we will take a look at the various funding options available to help medical and healthcare facilities obtain short-term and long-term financing to meet these challenges in hiring nursing staff and make payroll.

SBA Loans

For medical practice and healthcare-related facilities, one of the top options for financing are SBA loans. SBA loans are a type of conventional financing provided by banks in which the government agrees to cover most of the lenders’ exposure in case of a default by a medical practice or healthcare-related facility should they be unable to repay their loan. SBA lending has multiple programs available, including SBA 7(a) loans, SBA 504 loans, SBA Express and SBA disaster loans. While this is a great program to obtain low-cost, long-term financing, the process may take some time to complete. But, should you qualify and fulfill the due diligence process, you will have rates as low at 5-7% with terms ranging from 3-10 years for working capital purposes.

Rates 5-7%
Terms 3-30 years
Funding Amounts $50,000-$5,000,000
Collateral Required
Fees low costs

 

SBA Disaster Loans

SBA disaster loans are a program meant to help businesses in areas where a disaster has hit, and conventional financing isn’t available. This program was recently beefed-up to help businesses affected by the Coronavirus (SARS-CoV-2 more commonly known as COVID-19, the virus that leads to the Coronavirus). The U.S. Government has pledged up to $50 billion dollars in relief assistance to help businesses affected by the Coronavirus. Businesses will be able to qualify for rates as low as 3.75% (and 2% for nonprofits) with terms up to 30 years.

 

Rates 2-3.75%
Terms up to 30 years
Funding Amounts $10,000-$2,000,000
Collateral May be required
Fees  Low costs

 

Bank Loans

Bank lending is by far the cheapest form of financing available to medical and healthcare facilities needing to hire nurses and make payroll for staffing due to the Coronavirus (COVID-19) outbreak. While the rates are certainly affordable, the process of obtaining the loan may be time consuming and the requirements are certainly stringent. But if you meet the criteria for bank lending to hire your staff, you will have fantastic rates and terms, with minimal fees.

Rates 5-10%
Terms 1-10 years
Funding Amounts $10,000-$5,000,000
Collateral Usually required
Fees Low costs

 

Midprime Loans

Midprime loans are loans that provide healthcare-related businesses with quality working capital options and bridge loans at an affordable rate, without the time consuming underwriting and due diligence processes associated with SBA loans and SBA disaster lending. This can be a useful form of financing for healthcare companies that need money quickly to help staff-up their businesses during the Coronavirus crisis.

Rates 8-15%
Terms 1-5 years
Funding Amounts $10,000-$500,000
Collateral Not Required
Fees Medium costs

 

Cash Advances

Healthcare-related cash advances are the fastest type of financing used for working capital and SBA bridge loans for healthcare companies that need financing the same day as they apply or, at least, within 1-3 days to help hire nursing staff and make payroll. But there is a tradeoff for the fast financing, as the cost of borrowing for cash advances is much higher than more conventional financing options. But if the need is immediate, there aren’t any other options to obtain up to $250,000 within hours to hire staff and make payroll.

Rates 1.08 – 1.49
Terms 3-24 months
Funding Amounts $10,000 – $2,000,000
Collateral Not Required
Fees Medium costs

 

Lines of Credit

Lines of credit are a way for healthcare-related companies and nursing homes to have preapproved financing available to hire staff to deal with the Coronavirus (SARS-CoV-2 – COVID-19) pandemic. Lines of Credit can be secured by the companies accounts receivable and invoices or may be unsecured using the businesses credit to get approved. Lines of credit can be provided by banks, SBA lending or asset-based lenders.

Rates 5-15%
Terms 1-3 years
Funding Amounts $50,000-$5,000,000
Collateral May be Required
Fees low costs

 

0% Credit Cards

Business credit cards with 0% APR are another type of unsecured financing used by healthcare and medical-related businesses to hire staff and make payroll to deal with the Coronavirus and other infectious diseases. While the APR is 0%, it is only that low for a year, before it resets at a much higher interest rate. Therefore this tool is best used as a bridge loan until you refinance it before the year is up.

Factor rates 0% APR for 12 months
Terms 12 months
Funding Amounts $5,000-$100,000
Collateral Not required
Fees Low costs for 12 months

Summary

There are plenty of funding options for healthcare and medical related businesses in need of hiring nurses and staff to help with the outbreak of the Coronavirus (COVID-19) pandemic. The key is finding the best option for your unique circumstances. If you need help obtaining a coronavirus nurse staffing loan, please reach-out to one of our funding specialists, and we will help you obtain the best option for your company

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About the author
Domonique Cox

Domonique is a Minnesota native that earned her bachelors from The University of Arizona with a degree in English and Film Studies. Though books and writing are not her only interest, you can find her engaging in nutritional sciences, environmentalism, vegan cuisine, filmmaking, old school dancing, tennis, running, sound engineering, and enjoying satirical dark comedies or listening to the poetic lyrics of Bob Dylan. She is now based in Los Angeles as a content writer for GUD Capital where she spends her spare time honing her writing and directing skills. 

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