PRACTICE TYPES
What Type of Dental Property Are You Financing?
Dental offices are a common SBA use case, because most dentists occupy the space they buy. Lenders look at practice production, the dentist’s credit and the cost of the buildout.
Solo / Small Group Practice
1–4 operatories, owner-dentistThe most common dental property type. Owner-dentist buys a building and builds out treatment rooms, sterilization, X-ray, and reception. SBA 504 covers the entire project at 10% down.
Multi-Specialty Group
6–12+ operatories, multiple providersLarger facilities with general dentistry, orthodontics, oral surgery, and pediatric dentistry under one roof. Higher buildout cost and larger loan amounts than a solo practice.
Practice Acquisition + Real Estate
Buying the practice AND the buildingAcquiring an existing dental practice with its real estate included. SBA 7(a) can combine practice goodwill, equipment, real estate, and working capital in one loan up to $5M.
FINANCING OPTIONS
Loan Options for Dental Offices
SBA loans are a common path for dentists who occupy their space. Banks with healthcare lending groups are another option.
SBA 504
Best for buying your dental buildingA common choice for dentists buying their building. Buildout costs (operatories, X-ray shielding, plumbing, compressed air) and major equipment (chairs, CBCT, panoramic) rolled into one fixed-rate loan.
SBA 7(a)
Practice acquisition + RE + working capitalBest for buying a practice + building together. One loan covers goodwill, patient charts, equipment, real estate, and opening working capital.
Conventional Bank
Established practices, fastest closeFaster than SBA for established dentists with strong financials and 25–35% down. Some banks have dedicated dental/medical lending divisions.
Equipment Financing
Chairs, CBCT, CAD/CAM, panoramicFor equipment purchases separate from real estate. Dental chairs, CBCT scanners, CAD/CAM systems, and sterilization equipment.
Typical ranges, updated September 2026. Your terms depend on the property, the borrower and the lender.
WORKED EXAMPLE
Example: Buying a Dental Practice and Its Building with One SBA 7(a) Loan
When a dentist buys a practice together with its building, one SBA 7(a) loan can cover both — but the two parts have different maximum terms: up to 25 years for the real estate and up to 10 years for the practice (goodwill, equipment and patient records). The loan’s term is blended between them, weighted by amount. Assumptions for illustration only: a $900,000 practice and a $1,100,000 building, 10% equity, Prime at 7.00% plus 2.75%, computed with our SBA 7(a) calculator.
| Amount | |
|---|---|
| Total purchase (practice $900,000 + building $1,100,000) | $2,000,000 |
| Equity (10%) | $200,000 |
| SBA 7(a) loan | $1,800,000 |
| Blended term: ($1.1M × 25 years + $0.9M × 10 years) ÷ $2.0M | about 18.25 years |
| Monthly payment at 9.75% | $17,620 |
| For comparison: all on a 10-year term / all on 25 years | $23,539 / $16,040 |
The blended term keeps the payment far below a 10-year practice loan; the lender calculates the exact blend from your purchase allocation. An alternative structure puts the building in an SBA 504 loan with a fixed rate and finances only the practice with 7(a) — two closings, but the real estate rate no longer floats with Prime.
Typical ranges, updated September 2026. Your terms depend on the property, the borrower and the lender.
KEY METRICS
What Lenders Evaluate for Dental Office Loans
THE PROCESS
How Dental Office Financing Works
Define Your Project
Buying a building for your practice, building out a leased space, acquiring an existing practice, or purchasing equipment? Each has a different optimal path.
Submit to BestLoanUSA
Share practice financials, personal credit, property details, and buildout scope. No hard credit pull at this stage.
Advisor Review
Dedicated advisor evaluates whether SBA 504, 7(a), conventional, or equipment financing is the right structure and identifies lenders with dental practice experience.
Lender Matching
We submit to dental-experienced lenders including banks with dedicated healthcare/dental divisions. You compare the offers lenders return.
Underwriting & Appraisal
Dental-specific appraisal. Provide 2 years tax returns, practice P&L, patient count trends, equipment list, and buildout estimates.
Close & Build Out
SBA 7(a): 30–60 days. SBA 504: 60–90 days. Conventional: 30–45 days. Equipment: usually faster than real estate loans. TI funds on draw schedule during operatory construction.
Free tools
Run the numbers
The same metrics a lender checks — free, instant, no signup. Each result links straight into an application.
- SBA 504 Loan Calculator Estimate your SBA 504 loan structure — see the three-part split (borrower, CDC, bank), monthly payments for each portion, and total project financing.
- SBA 7(a) Payment Calculator Estimate monthly payments on an SBA 7(a) loan with Prime + spread variable rate. See how rate changes affect your payment and plan for different scenarios.
FAQ
Frequently Asked Questions
Should I buy or lease my dental office?
If you plan to practice for 5+ years in the same location, buying builds significant equity and locks in occupancy cost. SBA 504 makes this accessible at just 10% down. Dental offices with specialized plumbing and X-ray infrastructure are expensive to rebuild, so owning gives you control over your most critical asset.
Can I combine practice acquisition and real estate in one loan?
Yes. SBA 7(a) allows this. One loan covers practice goodwill, patient charts, existing equipment, the real estate, and even opening working capital. This is a common structure when buying an existing practice that includes the building.
How long can an SBA loan be when I buy a dental practice and its building together?
SBA 7(a) allows up to 25 years for real estate and up to 10 years for a practice acquisition, so a combined loan gets a term blended between the two by amount. In our example, a $900,000 practice and a $1,100,000 building blend to about 18.25 years — a $17,620 monthly payment on $1,800,000 at 9.75%, versus $23,539 over 10 years.
How much does a dental office buildout cost?
Dental buildout cost depends on the size of the space, the number of operatories and what each needs (chair, delivery unit, light, cabinetry, plumbing, vacuum, compressed air, X-ray shielding). Get a contractor’s estimate and equipment quotes before you size the loan; SBA 504 or 7(a) can include the buildout with the building purchase.
What equipment financing is available for dentists?
Dental chairs, CBCT scanners, CAD/CAM milling systems, panoramic X-ray units, sterilization equipment, and operatory cabinetry can all be financed. Equipment loans are secured by the equipment itself and usually close faster than real estate loans.
Do I need experience to buy a dental practice?
For the dental license yes, but for financing, new graduates can qualify. Many dental-specific SBA lenders work with recent dental school graduates acquiring their first practice. Strong personal credit (680+), a realistic business plan, and a transition plan with the selling dentist strengthen the application significantly.
What about DSO (Dental Service Organization) acquisitions?
DSOs acquiring multiple practices typically use conventional or private equity financing rather than SBA. For individual dentists selling to a DSO and buying out the real estate separately, SBA 504 or conventional financing works. DSO roll-up financing is a specialized category — ask your advisor about options.
Related on BestLoanUSA
Financing options
All loans →- Medical Office A medical office loan finances a building used for healthcare — a physician practice, outpatient clinic or surgery center. Practitioners who occupy it can use SBA 504 or 7(a) with up to 90% financing; investors buying a leased medical building use bank or DSCR loans. Medical & dentalTenant improvements
- Tenant Improvement Tenant improvement (TI) financing pays for the buildout of a commercial space — walls, electrical, HVAC, fixtures — whether you own the building or lease it. Owners can roll TI into an SBA 504 or conventional loan; tenants often combine SBA 7(a) with the landlord’s TI allowance. Tenant improvementsSBA 7(a)
- Gym & Fitness A gym or fitness center loan finances the facility — buying the building, a buildout in leased space, or an expansion — often alongside equipment financing. Owner-operators can use SBA loans with 10–15% down; bank loans suit established operators. Tenant improvementsSBA 7(a)
- Restaurant A restaurant property loan finances the building a restaurant operates from — buying it, building out the space or refinancing. Owner-operators who occupy the property can use SBA 504 or 7(a) with as little as 10% down; investors buying a leased restaurant use bank or DSCR loans. Tenant improvementsSBA 504
Guides & articles
All articles →- Medical Office Building Loans: Financing a Practice Facility How healthcare professionals finance a medical office building: SBA 504 and 7(a), bank loans, down payment, and when owning beats leasing. Medical & dentalSBA 7(a)
- SBA 7(a) vs. SBA 504: Which SBA Loan Do You Actually Need? Both are SBA loans — but they work completely differently and are right for different situations. Here's the side-by-side that tells you which one fits your need. SBA 7(a)SBA 504
- Pennsylvania Business Loans: SBA, State Programs & Lenders Pennsylvania has two of the most distinct business markets in the country — Philadelphia's dense urban economy and Pittsburgh's tech and healthcare resurgence — plus a vast rural and manufacturing interior. Here's how to navigate financing across the state. Medical & dentalSBA 504