Short Answer
SBA 7(a) is the most flexible loan program for dental practices. Rates: 9.75–10.25% APR (May 2026, variable). Terms up to 10 years on practice + equipment, 25 years on real estate. Up to $5M. Funds practice acquisition, de novo, equipment, working capital, and refinancing. Live Oak Bank dominates the dental SBA market. Approval takes 45–90 days.
SBA Loans for Dental Practices (2026)
Key Takeaways
- → SBA 7(a) offers competitive rates (9.75–10.25% APR) and 10-year terms — the standard for dental acquisitions.
- → 100% financing is possible — SBA's 75–85% guarantee lets lenders fund without a large down payment.
- → Live Oak Bank is the dominant dental SBA lender. Bank of America and Huntington also participate.
- → Approval timeline: 45–90 days. Start the process well before your target close date.
- → Working capital, equipment, and refinancing can all be rolled into the SBA loan.
Top SBA Lenders for Dental Practices
eBoost Partners
SponsoredBest Overall — Multi-Lender Quote Matching
Live Oak Bank
#1 SBA Dental Lender
How SBA 7(a) Works for Dental Practices
The SBA doesn't lend directly. Instead, it guarantees 75–85% of the loan made by an SBA-approved lender. This guarantee reduces the lender's risk, which lets them offer lower rates, longer terms, and more flexible underwriting than purely conventional loans. For dental practices specifically, SBA 7(a) provides the right combination of capital availability, term length, and use flexibility for most acquisitions and startups.
SBA 7(a) Rates for Dental Practices (May 2026)
| Loan Amount & Term | Max Spread Above Prime | Rate at Prime 7.5% |
|---|---|---|
| Over $50,000 — term >7 years | Prime + 2.25% | 9.75% |
| Over $50,000 — term ≤7 years | Prime + 2.25% | 9.75% |
| $25,001–$50,000 | Prime + 3.25% | 10.75% |
| Under $25,000 | Prime + 4.25% | 11.75% |
Rates are variable, tied to the Wall Street Journal prime rate. If prime drops to 6.5%, your rate drops accordingly. Most dental SBA 7(a) loans are written at the maximum spread, since lenders price competitively against each other for high-quality dental deals.
SBA 7(a) Eligibility for Dentists
- For-profit US business — Your dental practice must be organized as a US LLC, PC, or corporation
- Personal credit — 650+ FICO at most lenders; 680+ for best rates
- Clinical readiness — Active dental license. New graduates accepted at specialty dental lenders.
- Owner equity — SBA requires "reasonable owner equity," but this can be the practice goodwill in acquisitions
- No open federal tax liens — Outstanding IRS debt disqualifies you unless in an active payment plan
- No recent bankruptcies — Discharge must typically be 5+ years old for SBA underwriting
- Size standard compliance — Your practice (alone or combined with affiliated practices) must meet SBA size standards for healthcare ($16.5M revenue cap for dental offices)
What Can You Use an SBA 7(a) Dental Loan For?
| Allowed Uses | Not Allowed |
|---|---|
| Practice acquisition (purchase price) | Personal expenses |
| De novo practice startup costs | Investment in another business |
| Dental equipment (chairs, CBCT, CAD/CAM) | Speculation or investment purposes |
| Working capital and reserves | Paying down owner draws |
| Refinancing high-rate dental debt | Investment property purchases |
| Practice or office real estate | Relending to others |
| Partner buyout / associate-to-owner | Buying patient lists from a competing practice (some restrictions) |
SBA 7(a) vs. Conventional Dental Practice Loan
- Choose SBA 7(a) if: You want the longest possible term, lower down payment, or are buying with limited collateral.
- Choose conventional if: You need fastest possible funding (under 30 days), want minimum paperwork, or qualify for a relationship-priced loan from your existing bank.
Many established dental practices use both: SBA for the initial acquisition or de novo, then refinance to conventional 3–5 years later once the practice has demonstrated cash flow.
Documents Required for SBA 7(a) Dental Application
- Last 3 years of business tax returns (if acquiring a practice — seller's returns)
- Last 3 years of personal tax returns (Form 1040)
- Year-to-date P&L statement and balance sheet
- 3–6 months of business bank statements (acquisition target)
- Business debt schedule (all current obligations)
- Personal financial statement (SBA Form 413)
- Dental license, DEA registration, malpractice insurance
- Practice purchase agreement or de novo project budget
- Practice valuation report (required for acquisitions)
- Business plan (especially for de novo and new graduate buyers)
Find SBA Lenders for Dental Practices
Get matched with SBA Preferred Lenders that specialize in dental.
Check My SBA Options →Related Resources
- Dental Practice Acquisition Loans
- De Novo Practice Loans
- Live Oak Bank Review — #1 Dental SBA Lender
- Loan Payment Calculator