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The SBA has given approval for more guaranteed loans in 2007, primarily through its 7(a) business loan program.  “It’s good that we’re reaching a lot of smaller businesses,” said SBA Administrator Steven Preston in a news release.

“A lot of them have challenges getting capital.”  No kidding.  

The amounts of the government-guaranteed loans have declined this year, but I don’t see that as much of a problem for new practices, since the amounts you borrow are typically smaller.  So if you need an SBA guarantee on a loan, maybe you will have an easier time getting it. 

If you are interested in a gettting an SBA-guaranteed loan, there are several ways to go about it.

1.  You could pre-apply for a loan.  I know of one DC who did this.  When no bank would agree to loan him money he went to the SBA and got a pre-approval, which he took back to a bank and finally received a loan.

2.  If you are working with an SBA preferred or guaranteed lender, they can walk you through the process and help you with the paperwork.  I checked on the SBA website, and found that the list of Preferred/Certified lenders is being updated (it’s been in the “update” mode for some time).  When you talk to a bank for the first time, ask if they are a Preferred or Certified lender.

The SBA guarantee will cost you a little more in terms of interest rates and fees, but it’s a good alternative if you don’t have a co-signer.

Please comment and let us know if you have had a good or bad experience with SBA guaranteed loans.

A common startup marketing question relates to Yellow Pages ads:  Should I get one? 

I know some practice management companies tell you not to bother, that you will get patients by referrals.  But where do you think the initial patients come from, the ones who refer?  Some of them will be coming to you from a Yellow Pages ad.

As usual, the value of a Yellow Pages ad depends on the area.  If you are advertising in the greater Chicago book, you’ll probably become lost in the pack unless you specify your area FIRST.  For example, “Oakbrook Chiropractor” might be your headline.  In a smaller city or town, a phone book ad might be a great way to get people to come to your office the first time.  I talked with a recent grad who says he gets several people a week from the phone book.

Of course, if you talk with book ad placement “coordinators,” they’ll tell you that you must place the biggest and and in color, because their marketing research shows these ads sell the best.  But don’t forget this research is very generic, covering everything from pizza places to air conditioner repair. 

So what do you think?  Should chiropractors place big ads in the phone book?  Should you place a big ad the first year and cut back?  If you have a positive or negative experience with Yellow Pages ads, let us know.

Next post:  content of YP ads.

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Hi. I’m Jean Murray, and I’m excited to be able to welcome you to the new blog for StudentDC and chat with you directly.

My goals for this blog are:

• To provide you with information, advice, and encouragement to help you prepare for your career in chiropractic, whether it is as an associate or independent contractor, or a practicing chiropractor in your own practice or a multi-disciplinary clinic, or anything in between.
• To provide a way for you to ask questions and get answers from me and from other experts in chiropractic and practice startup. I know from talking to students and recent graduates that you have lots of concerns and questions. If I can’t provide the answer, I am sure it’s out there.

I will be posting several times a week, and I welcome your comments and your suggestions on the kinds of information you would like to see on this blog. The best way to get in touch with me is to respond by commenting on a blog posting.

If you have a burning question about practice startup, now is the time to ask.

To get your thought processes going, here are some topics you might want to know about:

• Can you use credit cards to fund your practice startup?
• How do you get a credit report?
• What form of business structure should you choose?
• How important are Yellow Pages ads?
• Do you need a co-signer for a practice startup loan? If so, how do you get one?
• How do you know what fees to charge?
• How do you find information on costs of equipment?
• What is “working capital” and how do you figure it?
• Do you take your business plan to a bank before or after you find a place to lease or buy?
• Which is better, buying an existing practice or starting your own?
• Are there too many chiropractors?
• Is this a good associate contract?

What else would you like to know?