Industry data
Financing for dental practices: what the loan data shows
2,200 SBA 7(a) loans went to dental practices recently, at a median of $475,100. The lenders that make them, the terms they write, and what underwriters look at.
2,200 SBA 7(a) loans went to dental practices in the most recent fiscal years, at a median of $475,100 over 10 years. 31.8% went to new or under-two-year-old businesses, and the most active lender was Live Oak Banking Company.
What a dental practice loan actually looks like
These are approvals, not advertised ranges. Computed from SBA 7(a) loan-level FOIA data released 2026-06-30.
| Measure | Dental practices | All 7(a) borrowers |
|---|---|---|
| Loans approved, fiscal years 2023 to 2026, using data released June 2026 | 2,200 | 214,102 |
| Median loan | $475,100 | $150,000 |
| 25th - 75th percentile | $150,000 - $1,272,400 | $50,000 - $500,000 |
| Median term | 10 years | 10 years |
| Median initial rate | 9.07% | 10.25% |
| Share to new businesses | 31.8% | 33.6% |
| Charge-off rate, FY2010-19 | 2.6% | 7.1% |
What stands out
Reading these figures against all 7(a) borrowers:
- Loans here run larger than average. The median of $475,100 is 217% above the $150,000 national median. Expect lenders in this market to be geared toward bigger deals, and expect a small request to get less attention.
- Startup share is about average, at 32% against 34% nationally.
- No single lender dominates, but the top three made 33% of these loans, so the shortlist below covers most of the active market.
- Rates run lower here. The median initial rate of 9.07% is 1.18 points below the 10.25% national median, which usually tracks loan size and perceived sector risk rather than geography.
- This market has performed well. Its FY2010-2019 charge-off rate of 2.6% is below the 7.1% overall figure, which is part of why lenders compete for it.
What lenders look at in this sector
Dental practice acquisition is among the few places where 100% financing is genuinely available to a qualified buyer. Lenders focus on collections versus production, active patient count, hygiene recall, and how much production walks out with the selling dentist.
Which lenders actually fund dental practices
Ranked by loans approved in this niche. The median, startup share and rate describe each lender's own loans to dental practices, not its national averages — which is how you spot a genuine specialist.
| Lender | Loans | Median loan | Startup share | Median rate |
|---|---|---|---|---|
| Live Oak Banking Company | 376 | $1,500,000 | 34% | 8.25% |
| The Huntington National Bank | 216 | $773,000 | 46% | 8.25% |
| Bank of America | 142 | $596,300 | 89% | 5.97% |
| Newtek Bank | 112 | $250,000 | 7% | 10.60% |
| BayFirst National Bank | 93 | $150,000 | 1% | 12.50% |
| Fifth Third Bank | 76 | $1,728,500 | 43% | 7.50% |
| Wells Fargo Bank | 71 | $705,800 | 59% | 6.95% |
| United Midwest Savings Bank | 70 | $1,133,000 | 29% | 10.25% |
| Readycap Lending, LLC | 61 | $150,000 | 7% | 13.25% |
| TD Bank | 51 | $100,000 | 24% | 10.75% |
Where these businesses borrow
Most active states for dental practices: California (366), Texas (209), Florida (205), New York (126), Ohio (86), Colorado (79).
Which financing fits
| Product | Fit for this sector | Typical cost |
|---|---|---|
| SBA 7(a) | The dominant vehicle in this niche | 10.0% - 14.0% APR |
| Commercial mortgage | If you are buying the building | 6.5% - 9.5% APR |
| Equipment financing | For the hard assets, often cheaper separately | 7.0% - 30.0% APR |
| Business acquisition loan | If you are buying an existing operation | 10.0% - 14.0% APR |
Before you apply
- Check coverage first. Run the payment through the affordability calculator at 1.25x.
- Shortlist from the lender table, favouring ones whose median loan here is close to what you need.
- Assemble the documents — see the checklist.
- If you are buying rather than starting, read business acquisition loans first; the injection rules and diligence are different.