SBA Loans for Dental Practice Acquisitions: The Complete Guide

SBA loans are the most common way dentists finance practice acquisitions. Here is how they actually work, which banks specialize in dental, and what you need to get approved.

SBA 7(a) Loan Basics for Dental

• Down payment: 10-15% (vs 20-30% for conventional)
• Terms: 10 years for practice acquisition, 25 years if real estate included
• Rates: Prime + 1-2.75% (variable) or fixed options
• Max amount: $5 million

Dental-Friendly SBA Lenders

Live Oak Bank, Bank of America Practice Solutions, and Wells Fargo Practice Finance specialize in dental acquisitions and understand the industry.

What Lenders Look For

• Debt service coverage ratio of 1.25x or higher
• Clinical experience (2+ years preferred)
• Practice cash flow history
• Personal credit score 680+