Short Answer

Dental practice acquisition loans finance the purchase of an existing practice. Rates start at 8.5% APR for qualified buyers. 100% financing is available from specialty dental lenders with 680+ credit. Live Oak Bank, Bank of America, and Wells Fargo dominate this market. SBA 7(a) loans offer the lowest rates and longest terms (10 years) but take 45–90 days to fund.

Dental Practice Acquisition Loans (2026)

Key Takeaways

  • → Acquisition loans finance 100% of the purchase price for qualified buyers — minimal down payment required.
  • → Specialty dental lenders (Live Oak, BofA, Wells Fargo) offer better terms than generalist business lenders.
  • → SBA 7(a) is the most popular structure — 10-year term, 9.75–10.25% APR, government guarantee.
  • → Approval timeline: 30–90 days depending on lender type. Start the process 90 days before target close.
  • → The practice's collections, EBITDA, and chair productivity drive your loan amount more than your credit score.

Best Dental Practice Acquisition Lenders

1

eBoost Partners

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2

Live Oak Bank

#1 SBA Dental Lender

From 9.75% Up to $5,000,000 650+ FICO
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3

Bank of America

Best National Bank

From 8.5% Up to $5,000,000 680+ FICO
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4

Wells Fargo Practice Finance

Best for Established Practices

From 8.75% Up to $5,000,000 680+ FICO
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5

Huntington Bank

Best Regional Bank for Dental

From 9% Up to $3,000,000 660+ FICO
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How Dental Practice Acquisition Loans Work

An acquisition loan finances the purchase of an existing dental practice. The loan is secured against the practice's assets — patient records, equipment, leasehold improvements, and goodwill. Unlike most small business loans, dental acquisition loans regularly fund 100% of the purchase price for qualified borrowers, because the cash flow of an established practice provides reliable debt service.

Lenders evaluate three things in roughly this order: (1) the practice's financial performance over the past 3 years, (2) the buyer's personal credit and clinical track record, and (3) the deal structure and price relative to valuation. A profitable practice with a clean P&L often supports a loan that would be impossible to get on the buyer's profile alone.

Acquisition Loan Rates by Lender Type (2026)

Lender Type Typical APR Max Term Funding Time
Specialty dental lender (conventional)8.5%–11%10 years30–45 days
SBA 7(a) via dental specialist9.75%–10.25%10 years45–90 days
National bank (BofA, Wells Fargo)8.5%–10.5%10 years30–45 days
Generalist business lender11%–18%5–7 years2–4 weeks

What Lenders Evaluate

  • Practice EBITDA and collections — Most lenders want to see 3 years of P&Ls showing consistent or growing collections. EBITDA of 30%+ of collections signals a healthy practice.
  • Goodwill-to-tangible asset ratio — High goodwill (over 70% of price) requires stronger buyer profile and practice metrics.
  • Buyer clinical experience — 2+ years as an associate is the standard. New graduates can qualify with strong personal credit and a mentor relationship.
  • Personal credit and finances — 680+ FICO for best rates. Strong personal financial statement matters even with 100% financing.
  • Practice transition plan — Lenders favor deals with seller transition support of 90 days to 12 months.

SBA 7(a) for Practice Acquisitions

SBA 7(a) is the most common acquisition loan structure for dentists. The government guarantees 75–85% of the loan, which lets lenders offer better terms than they would on a pure conventional basis. For dental acquisitions, the typical structure is:

  • Loan amount: Up to $5M (typical: $500K–$1.5M)
  • Term: 10 years (real estate component can extend to 25 years)
  • Rate: Prime + 2.25–2.75% (currently 9.75–10.25% APR)
  • Down payment: 10% typical, but 0% is possible with strong cash flow
  • Working capital: Can roll $50K–$150K into the loan for post-close operations

Live Oak Bank is the #1 SBA 7(a) lender for dental practices in the US — they fund more dental SBA loans than the next several competitors combined.

Acquisition Loan Process: Step-by-Step

  1. Get pre-qualified — Soft credit pull, gives you a target acquisition price.
  2. Identify a practice — Work with a broker or seek associate-to-owner transitions.
  3. Letter of intent (LOI) — Negotiate price and terms with seller.
  4. Practice valuation — Required by every lender. Costs $3,000–$8,000.
  5. Submit formal application — Personal financials, tax returns, practice P&Ls.
  6. Underwriting and approval — 30–60 days. Lender may request additional documentation.
  7. Closing and funding — Loan funds at closing, paid directly to seller.

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Related Resources

Frequently Asked Questions

How much can I borrow to buy a dental practice?
Most lenders finance practice acquisitions up to $5 million, with the most common range being $300,000–$1.5M. Live Oak Bank, Bank of America, and Wells Fargo all extend to $5M for qualified buyers. The loan amount is typically capped at the lower of the appraised practice value or the purchase price.

Can I get 100% financing on a dental practice purchase?
Yes — 100% financing is available from specialty dental lenders like Live Oak Bank, Wells Fargo Practice Finance, and Bank of America for borrowers with 680+ credit, strong personal finances, and a practice with clean financials. SBA 7(a) loans frequently fund 100% of the purchase price plus working capital.

What credit score do I need to buy a dental practice?
Specialty dental lenders typically require 650+ FICO as a minimum, with 680+ for the best rates. Live Oak Bank works with new graduates as low as 640 with strong supporting profile. National banks (BofA, Wells Fargo) generally want 680+ and 2 years of practice experience as an associate.

How long does dental practice acquisition financing take?
Specialty dental lenders fund acquisitions in 30–60 days. SBA 7(a) loans run 45–90 days due to government processing. National banks fall in between at 30–45 days. Plan for at least 45 days from full application to closing, with another 1–2 weeks for transition arrangements.

What documents do I need for a dental practice acquisition loan?
Standard requirements: 3 years of practice tax returns (P&L for the practice you're buying), your personal tax returns (3 years), personal financial statement, dental license, CV/resume, the practice purchase agreement, and a practice valuation. Specialty lenders may also request the seller's chair count, patient volume, and recall metrics.