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Funding for new practice in California

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In the early stages of planning an urgent care in California. In California, state law requires ownership of a medical corp to be at least 51% physician and no more than 49% for PAs. I have an interested physician who will serve as medical director for chart review and consultation, as well as 51% owner. This is a common model here in California. So the corporation will be owned by me and the MD but he will only be paid a small percentage of the net revenue. When securing financing I would like to be the only guarantor on the loan. I know this is not a common occurrence so securing financing may be a challenge. Does anyone out there have any recommendations for financing? I have sent out several inquiries to some lending institutions and waiting to hear back. I know the big banks will have a lot of red tape so I plan on going to my local credit union to inquire as well. The SBA is out because they require all of the principals in the company to be guarantors on the loan; no way I can ask the MD to assume 50% of the risk while only paying him 5% of the revenue. Any thoughts/suggestions would be appreciated.


About me:

800 FICO score

100K in assets

Own 1 home with approx 10% equity

Would need approx 250-300k for startup equipment, build out and operating expenses for 3-6 months

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  • 1 year later...

Hi ummm987, I just came across this post. My husband and I are in a very similar situation and were wondering if you found a solution to your financing needs?


We are opening up our own practice, but are still in the early stages of building out or business plan, speaking with lenders and trying to find a physician that would be a good fit for us.


Any insight would be helpful, thank you.



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