Dental practice loans pay for buying a practice, opening a new office, adding equipment and technology, renovating or expanding, buying the building, and covering working capital. Most come from specialty healthcare lenders, banks making SBA 7(a) and 504 loans, and equipment finance companies. SBA 7(a) loans go up to $5 million, and SBA caps the rate on its variable-rate loans at a set margin over the prime rate.
This page is the dental hub within our healthcare and industry financing guides. It covers the loan types dentists use, what they cost, what lenders look for and where to go next. It sits alongside our medical practice financing and veterinary practice financing pages.
Dentistry by the numbers
The American Dental Association’s Health Policy Institute (HPI) reports “over 200,000 dentists in the U.S.” (ADA HPI). Several of its findings matter when you borrow:
- Ownership is declining and happening later. HPI reports that “73% of dentists were practice owners in 2023 compared to 85% in 2005” (ADA HPI). Its research on graduates found ownership has shifted toward mid-career: 21% of 2016–20 graduates owned practices three to seven years out, while 81% of 2006–10 graduates were owners 15 to 19 years out (ADA News).
- DSOs are growing. The share of dentists affiliated with a dental support organization more than doubled from 7.2% in 2015 to 16.1% in 2024 (ADA HPI). That affects practice valuations and who you compete with when buying.
- Owners are investing in equipment. In HPI’s Q4 2025 survey, 25.6% of owner dentists said they had made major equipment purchases since the start of 2025, and 33.3% said they were very or somewhat likely to make major equipment purchases in 2026 (ADA HPI Economic Outlook, Q4 2025).
Types of dental practice financing
| Need | Common financing | Where to read more |
|---|---|---|
| Buying an existing practice | SBA 7(a) or conventional practice acquisition loan | Dental practice acquisition loans |
| Chairs, imaging, CAD/CAM, lasers, IT | Equipment loan or lease | Dental equipment financing |
| Build-out, remodel or new location | Conventional or SBA term loan, sometimes combined with equipment financing | Financing dental practice expansion |
| Buying the building | SBA 504, SBA 7(a) or commercial real estate loan | SBA loans |
| Payroll, supplies, insurance payment delays | Business line of credit | Business line of credit |
| Refinancing existing practice debt | SBA 7(a) or conventional refinance | Commercial loan refinance |
Who lends to dentists
Specialty healthcare practice lenders. Several banks run dedicated practice-finance teams. Live Oak Bank says it has “financed over $1.5 billion in practice loans to dental and medical professionals” and lends for acquisition, expansion, construction, commercial real estate, refinance and working capital (Live Oak Bank). Bank of America’s dental loan page covers starting a practice, expanding or acquiring, and buying equipment or commercial real estate, with conventional or SBA options (Bank of America). Neither page publishes rates or terms; you get those from a specialist after you apply.
SBA lenders. SBA 7(a) loans go up to $5 million and can fund changes of ownership, equipment, working capital, real estate and refinancing (SBA). SBA 504 loans, made through Certified Development Companies, finance buildings and long-life equipment, up to $5.5 million (SBA).
Equipment finance companies. These include finance arms tied to dental distributors. Henry Schein Financial Services, for example, says you can “finance up to 100% of the cost of equipment and technology purchases” with terms from 1 to 15 years, subject to credit approval by third-party lenders (Henry Schein).
Online and alternative lenders. These can move faster on working capital and smaller equipment, usually at higher cost.
What dental practice loans cost
SBA publishes maximum rates for 7(a) loans. For variable-rate loans, the cap is the base rate plus 3.0% for loans over $350,000, plus 4.5% for $250,001 to $350,000, plus 6.0% for $50,001 to $250,000, and plus 6.5% for $50,000 or less (SBA). With the prime rate at 7.00% on September 17, 2026 (Federal Reserve H.15), the cap on a $1 million variable 7(a) loan would be 10.00%.
Terms matter as much as rate. SBA 7(a) loans run 10 years or less unless they finance real estate or equipment with a useful life beyond 10 years, and real estate loans can run up to 25 years (SBA). SBA also charges an upfront guaranty fee that lenders can pass to borrowers (SBA).
Conventional practice loans from specialty lenders are priced individually. Ask each lender for the rate, whether it’s fixed or variable, all fees, any prepayment penalty and the total repayment. Our SBA loan calculator can help you compare monthly payments.
What lenders look for
- Your license and clinical experience. Expect questions about years in practice and, if you’re an associate, your own production history.
- Practice cash flow. For an existing practice, lenders review production, collections, overhead and payer mix. For SBA 7(a) Small Loans of $350,000 or less, SBA requires a debt service coverage ratio of at least 1.1:1 (SBA Procedural Notice 5000-875701).
- Credit history. From March 1, 2026, SBA no longer requires the FICO SBSS score for 7(a) loans of $350,000 or less; lenders use their own credit analysis instead (SBA).
- Equity. For an SBA-financed complete change of ownership, attorneys at Starfield & Smith summarize SBA’s rule as a minimum equity injection of 10% of total project costs (Starfield & Smith). SBA has announced an updated rulebook (SOP 50 10 8.1) taking effect October 1, 2026, so confirm the current equity rules with your lender.
- Existing debt. Student loans are part of your personal debt picture, so have balances and payments ready.
Pitfalls to avoid
- Financing everything short-term. Putting a build-out on a line of credit or merchant cash advance makes monthly payments far higher than a term loan.
- Ignoring the lease. For acquisitions and expansions, a short or unassignable office lease can stop a loan.
- Buying equipment without a revenue plan. HPI data show many owners are buying equipment; make sure the new equipment adds procedures you can bill.
- Comparing rates only. Fees, prepayment penalties and term length can outweigh a small rate difference.
- Waiting on insurance reimbursement. In HPI’s Q4 2025 survey, 55.3% of private-practice dentists named low insurance reimbursement, denials or other insurance issues among their top three challenges for 2026 (ADA HPI). A line of credit set up in advance can bridge payer delays.
Frequently asked questions
Can I get an SBA loan for a dental practice?
Yes. Dental practices are for-profit operating businesses and can use SBA 7(a) loans for acquisitions, equipment, working capital, real estate and refinancing, subject to SBA’s eligibility rules (SBA). See how to qualify for an SBA loan.
How much can a dentist borrow to buy a practice?
The SBA 7(a) maximum is $5 million per loan, and since July 4, 2026 SBA allows eligible borrowers to combine 7(a) and 504 loans for up to $10 million (SBA). The amount you qualify for depends on the practice’s cash flow and your finances.
Do dental lenders finance 100% of equipment?
Some do. Henry Schein Financial Services advertises financing up to 100% of equipment and technology costs, subject to credit approval (Henry Schein). See dental equipment financing.
What if I’m expanding, not buying?
Our related read on financing options for dental practice expansion covers renovations, new locations and added services.
Next step
If you’re comparing an SBA loan against a specialty lender’s offer, or need equipment or working capital, see the business loans available through the lenders we work with. SMB Compass is a broker: we help you compare offers from our lending partners, and you choose.
Sources
- ADA Health Policy Institute: U.S. Dentist Workforce (August 2025)
- ADA Health Policy Institute: Economic Outlook and Emerging Issues in Dentistry, Q4 2025
- ADA News: Younger dentists still become practice owners, just later in careers
- SBA: 7(a) loans
- SBA: Types of 7(a) loans
- SBA: 7(a) terms, conditions and eligibility
- SBA: 504 loans
- SBA: Procedural Notice 5000-875701
- SBA: Cumulative 7(a) and 504 loan limit raised to $10 million
- Federal Reserve: H.15 Selected Interest Rates
- Live Oak Bank: Healthcare Practice Loans
- Bank of America: Dental Practice Loans
- Henry Schein Financial Services: Dental Equipment Financing & Leasing
- Starfield & Smith: Equity injection requirements under SOP 50 10 8
About this page. Written by Ezra Cabrera, Content Team Lead at SMB Compass. Figures were checked against the primary sources listed above on September 21, 2026; lenders change their terms, so confirm current terms before you apply, and let us know if you spot a figure that has changed. SMB Compass is a business financing broker: we don’t lend our own money, and we are paid by the lenders we place loans with. This page is general information, not financial, legal or tax advice.