How to Get a Loan to Start or Buy a Dental Practice
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How to get a loan to start or buy a dental practice
Most dentists finance a practice through a dental-focused lender with a conventional practice loan, or through an SBA 7(a) loan. Dental lenders commonly finance up to 100% of a startup or acquisition, including working capital, over terms of about 10 years. To qualify you'll need good credit, manageable debt, some savings, a few years of clinical experience and a business plan with projections. Talk to two or three lenders early, before you choose a location or make an offer.
Your two main options
| Dental practice loan (conventional) | SBA 7(a) loan | |
|---|---|---|
| Who offers it | Banks with dental lending teams | SBA-approved lenders, including many dental lenders |
| How much is financed | Often up to 100%, plus working capital | Up to $5 million; a 10% equity injection is required for startups and full changes of ownership under 2025 SBA rules (part can come from a seller note) |
| Typical term | About 10 years, sometimes 12 to 15 | Generally up to 10 years for acquisition and working capital; real estate up to 25 years |
| Rate | Set by the lender | Variable rates capped by SBA, for example base rate plus 3% on loans over $350,000 |
| Watch for | Prepayment penalties | Prepayment penalty on terms of 15+ years (5%, 3%, 1% in years 1 to 3) |
Sources: SBA.gov (2026), Live Oak Bank (2025), Panacea Financial and ADA (2026). SBA rules change; confirm current terms with your lender.
Dental-focused lenders include Bank of America Practice Solutions, Panacea Financial (endorsed by the ADA, with a 0.25% rate discount and no origination fee for ADA members), Live Oak Bank and others. Compare the full terms, not just the rate: term length, prepayment penalties, interest-only periods and how much working capital is included.
Want to bring market research to your lender? Get free sample reports emailed to you to see what a full market report covers.
What lenders look at
- Credit score. One dental lender lists 750 or higher as a strong sign.
- Debt-to-income. Student loans count. Lenders want to see that the practice's cash flow can cover the loan and your living costs.
- Savings. Personal reserves of 10% or more of the loan amount help, even if the loan covers everything.
- Experience. Many dental lenders want about two to three years of clinical experience.
- The practice or site. For an acquisition, the practice's tax returns and production. For a startup, your plan and the market around the site.
Sources: ADA News (2025), Panacea Financial (2025), ADA New Dentist Blog (2019).
What to put in your business plan
A dental lender writing for the ADA lists five financial pieces lenders expect:
- Proof of financial stability: credit, tax returns, personal assets and debts.
- Startup and operating budgets.
- A balance sheet.
- A break-even analysis.
- A forecast income statement and cash flow, with your assumptions stated.
Lenders also want to see how you'll use the money and how the practice will cover its expenses plus the loan payment. For a startup, the strongest assumption you can support is patient demand at your location: how many residents there are per general practice nearby, plus income, age and growth. Market research makes your projections believable.
Steps, in order
- Clean up your credit and gather records (tax returns, bank statements, student loan balances).
- Talk to two or three dental lenders for a pre-qualification.
- Research the market where you want to open or buy.
- Build your plan and projections with a dental CPA.
- Apply once you have a specific site or practice. SBA loans commonly take 60 to 90 days to close (Live Oak Bank, 2025).
Where Dentagraphics fits. Lenders want to see that a location can support the practice. Dentagraphics provides that market data and holds no stake in any location or sale. A Single-Site Study ($695) examines one address with handwritten analysis by a demographer and human-verified competition data. An Area Analysis ($745) compares several areas. A free account shows demographics and competition for any state or county.
Frequently asked questions
Can I get 100% financing to buy or start a dental practice? Many dental lenders advertise financing up to 100% of the project plus working capital. SBA 7(a) loans require a 10% equity injection for startups and full changes of ownership under 2025 rules, though part can come from a seller note.
How long are dental practice loans? Commonly about 10 years, sometimes 12 to 15. SBA 7(a) loans are generally up to 10 years for acquisitions and working capital, and up to 25 years for real estate.
Do student loans stop me from getting a practice loan? Not usually. Lenders look at your overall debt-to-income ratio and the practice's expected cash flow. Dental lenders are used to borrowers with large student loans.
Do lenders want market research for a dental startup? Many do, because a startup has no history. Showing patient demand and competition at your site makes your projections credible.
Getting ready to talk to a lender? Get free sample reports emailed to you to see the kind of market data that supports a loan. Or create a free account and look up any area you're considering.