SBA 7(a) Dental Practice Loan Eligibility Quick-Check
Answer 10 questions about your borrower profile and the practice you want to buy. Get an instant Likely Eligible, Refer to Lender, or Not Yet Eligible verdict — plus your estimated loan size, monthly payment, and DSCR.
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SBA lenders typically require 680+ for a dental acquisition loan; 700+ is preferred for best terms.
Does not include retirement accounts (401k/IRA) — lenders generally exclude those from liquid reserves.
This is the practice’s discretionary earnings after paying a market-rate associate salary to replace the selling doctor. Also called SDE or adjusted EBITDA.
SBA 7(a) requires a minimum of 10% for dental acquisitions. Goodwill-heavy deals typically require 12.5%+.
Disclaimer: This tool provides a preliminary screening based on typical SBA 7(a) dental acquisition guidelines. It is not a loan pre-approval or commitment to lend. Final eligibility is determined by an SBA-approved lender. Prime rate assumed at 8.50% for payment estimates.
Your SBA Eligibility Result
Fill in your information and click Check My SBA Eligibility to see your verdict.
How to Use This SBA Eligibility Checker
Enter your personal financial profile, the practice you want to buy, and your intended loan structure. The calculator applies the key SBA 7(a) dental acquisition criteria and returns a three-tier verdict: Likely Eligible, Refer to a Dental-Specialist SBA Lender, or Not Yet Eligible.
How SBA 7(a) Loans Work for Dental Practice Acquisitions
The SBA 7(a) program is the most common financing vehicle for dental practice acquisitions in the United States. The SBA guarantees up to 85% of loans under $150,000 and 75% of larger loans, which allows lenders to extend favorable terms — low down payments, longer amortization, and competitive rates — to creditworthy dentists who may not have collateral equal to the loan amount.
Key Eligibility Requirements
- Credit score: Most dental-specialty SBA lenders require a minimum FICO of 680; 700+ is typical for best terms.
- Down payment: Minimum 10% of the purchase price. Goodwill-heavy deals (goodwill above 70% of price) typically require 12.5%.
- DSCR: Lenders want to see a Debt Service Coverage Ratio of at least 1.20–1.25, meaning the practice generates $1.20–1.25 in cash flow for every $1.00 of annual debt service.
- Citizenship: Borrower must be a US citizen or Lawful Permanent Resident.
- License: Active dental license in good standing in the state where the practice operates.
- Tax history: Lenders prefer 3+ years of profitable practice tax returns. Fewer returns or startup situations require compensating factors.
What Is DSCR?
Debt Service Coverage Ratio (DSCR) = Practice net cash flow ÷ Annual loan P&I payments. A DSCR of 1.25 means the practice earns $1.25 for every $1.00 it owes in debt payments. SBA dental lenders typically require a minimum DSCR of 1.20, though 1.25+ is preferred. A DSCR below 1.0 means the practice does not generate enough income to cover the loan — a hard decline for virtually all lenders.