1. Two main paths: SBA 7(a) or a specialty dental lender
SBA 7(a) loans are a common route: a participating lender makes the loan and the U.S. Small Business Administration guarantees part of it. According to the SBA's published 7(a) program terms (sba.gov, retrieved October 5, 2026), a 7(a) loan can be up to $5 million, and the maximum term is generally 10 years, or up to 25 years when the loan finances real estate. Rates and other terms are set by the lender within the SBA's limits.
Specialty dental lenders (banks and finance companies that focus on dental and other healthcare practices) underwrite practice cash flow regularly and may move faster than a lender that sees dental deals only occasionally; some offer high loan-to-value financing. Compare written terms from more than one lender.
2. What lenders actually look at
The practice's cash flow (SDE) relative to the debt service is the central number — lenders want to see the practice comfortably cover the loan payment plus a reasonable owner salary, with room to spare (a DSCR, or debt service coverage ratio, comfortably above 1).
They'll also look at your credit, any relevant experience, and — for larger or complex deals — a business plan or transition summary. First-time buyers do get financed.
3. Get pre-qualified before you shop seriously
A pre-qualification conversation with a lender (before you're under contract on anything) tells you your realistic budget and signals to brokers that you're a serious buyer — which matters when a good listing draws multiple interested buyers.
Pre-qualification is usually free and non-binding. It typically takes a conversation plus a light document pull, not a full underwrite.
4. Terms to ask about
Ask each lender for the term, the interest rate and whether it is fixed or variable, the down payment or equity they require, the fees, and whether working capital can be included. For SBA 7(a) loans, SBA.gov lists the maximum term as generally 10 years, or up to 25 years where the loan finances real estate (retrieved October 5, 2026). When real estate is part of a deal it is usually financed on its own terms, separate from the practice.
Rates and down payment requirements vary by lender, by whether the loan is SBA-backed or a direct specialty-dental product, and by the strength of the deal. Get them in writing before you compare.
5. What to have ready when you apply
Your own financials (tax returns, credit history) plus the practice's financials the broker provides once you're past the NDA stage: several years of P&Ls or tax returns, a collections trend, and the SDE / add-back schedule.
The cleaner and more complete the practice's financial package, the faster underwriting moves — this is one reason listings with a fully documented file close faster than sparse ones.