You May Be Qualified: SBA Financing for Medical Practices
For medical professionals looking to buy, expand, or refinance a healthcare business, securing the right kind of financing is key. While traditional bank loans are an option, SBA (Small Business Administration) financing offers a unique and often more flexible solution. Many dentists, podiatrists, chiropractors, dermatologists, and other healthcare providers may be pleasantly surprised to discover that they qualify for SBA loans —even if they don’t have perfect credit or a large down payment.
SBA loans are partially guaranteed by the federal government, which makes them less risky for lenders. As a result, lenders can offer more favorable terms to borrowers, including lower interest rates and longer repayment periods. The two most common types for professionals are the SBA 7(a) and the SBA 504 loan.
SBA 7(a) is great for practice acquisitions, working capital, and equipment purchases, while SBA 504 is designed for real estate or large fixed asset purchases.
Who Qualifies?
SBA loan qualification is more accessible than many professionals think. While requirements vary by lender, most will consider:
- A credit score in the range of 680 or higher
- A business plan or financial projection (especially for new practices)
- Relevant medical credentials and licenses
- A minimum amount for down payment
- Previous experience in the medical field
If you’re purchasing an existing medical practice, lenders often look at the cash flow of the current business rather than just your personal income—another huge benefit for those with limited borrowing history.
Why Medical Practices Are Ideal for SBA Loans
Medical practices—including dental offices, urgent care centers, med spas, pain management clinics, and more—are often considered low-risk industries for SBA lenders. These businesses typically generate steady revenue, have high patient retention, and perform well even during economic downturns. That makes them attractive investments and increases your chances of loan approval.
Common Uses for SBA Financing in Healthcare
Practice Acquisition – Buy an existing medical or dental practice with minimal out-of-pocket costs.
Real Estate Purchase – Purchase a facility instead of renting, allowing you to build equity over time.
Working Capital – Use funds to support payroll, marketing, inventory, or day-to-day operations.
Equipment Financing – Invest in the latest technology, from imaging systems to surgical equipment.
Partner with an Expert
Navigating SBA loan applications can be complicated without guidance. That’s where a specialized broker like ProMed Financial can be invaluable. With deep experience in healthcare transactions, ProMed can help match you with the right lender, structure the most favorable terms, and ensure your application includes everything underwriter teams look for.
If you’re a medical professional dreaming of ownership or expansion, SBA financing could be the perfect fit. You may already be qualified and just need the right support to get started. With the most favorable terms, flexibility, and wide range of uses, SBA loans continue to be one of the most powerful financing tools for healthcare professionals ready to invest in their future.