Dental Practice Financing
SBA lenders offers excellent loan options for all types of dental office loans as well as financing options for orthodontists, oral surgeons, periodontists, prosthodontists and endodontists.
SBA loans can be used for all of the following:
- practice financing
- purchase of a new building or facility
- construction of a new building or facility
- renovation or expansion of an office or surgery center
- equipment financing
- refinance of a practice
- refinance of a building/facility
- debt consolidation
- partner buyouts (partner buy-ins are not available with SBA “dental office” loans, but they are available via some of the conventional/non-SBA practice finance options).
100% Fixed Rate Financing for Purchase or Construction of a Building
Perhaps the best benefit an SBA loan for a dental practice provides is flexibility.
25 year fixed rate financing is available for existing practices for the purchase or construction of a building that your practice would occupy. The program actually consists of 2 loans – a fixed rate first mortgage for 90% of the purchase price (or 90% of the construction costs) and a 10% loan against your current practice equity.
Please contact us for more info at 1-800-414-5285
Orthodontic Practice Loans
Oral Surgery Facility Loans
Dental Practice Financing – Including 100%
If you are starting, purchasing or refinancing a dental, orthodontic or oral surgery practice then you should consider the SBA 7a loan as it is available for not only real estate, but business or practice acquisition, working capital, business debt consolidation and other “legitimate practice needs.”
It is also a very flexible program as it allows 100% financing for established practices. The same guidelines apply for dental practices as for medical practices. Please visit our medical practice financing page by clicking here for a summary of 100% financing options.
You can also visit our 7a loan page here: SBA 7a Loan
We recently helped a client refinance her practice debt. She had been in business for 1.5 years and had a practice loan from a large bank that had graduated payments. We were able to secure a 10 year fixed rate at 4% using an SBA 7a loan.
We recently helped a dentist refinance his building. He had a higher rate, shorter term loan of $1.9 million and we were able to secure a 5 year fixed with a 25 year amortization. The dentist had been practicing for just a few years, but his revenues were trending nicely and he wanted to build out space on the first floor of the building to be leased by complimentary practices including an orthodontist and an endodontist.
Cash Flow Loans and Lines of Credit for Dental Practices
If your practice is recovering from a bad year or two or if your current lender isn’t willing to accommodate your request for a higher credit line, then there may be options in the form of either a line of credit with an SBA guarantee or a cash flow loan based on your current revenues.
In the case of the line of credit, the SBA guarantee gives a bank or lender an insurance policy of sorts to backstop the line and may give them the freedom to offer a higher loan to value line or a slightly better rate.
Cash flow loans are different and can be very expensive. They are a loan (usually temporary) of last resort, but they serve a purpose and have helped many practices during tough times. (Please contact us at 1-800-414-5285 for more information if you feel this might be a solution for you).
The 504 Loan is Available for New Construction, Remodeling or Refinance and Expansion
The 504 program can be used to build a new facility or to refinance and remodel an existing medical or dental facility. It is an excellent solution for a practice expansion especially if you would like to upgrade and finance your equipment in the process.
SBA 504 Benefits
- Long term commercial financing at low rates.
- Commercial financing that is actually available – and with 10% down/10% equity.
- Financing of dental practice equipment with a useful life of 10 years or more.
- 90% loan to cost financing that is fully amortized with no balloons, calls, re-qualifying or refinancing necessary later.
- If you can reduce your energy bills by 10% by using energy efficient technology you can finance larger projects or possibly multiple locations.
More SBA 504 Loan info: 504 Loans
Summary of SBA 504 Renewable Energy Benefits
Please contact us at 1-800-414-5285 to find out how our expertise with the SBA 504 can help your business.