A dentist in Phoenix spent 8 years as an associate. Built a solid patient following. When the practice owner decided to retire, the asking price was $1.2M — fair for a practice doing $1.8M in annual revenue with strong margins.
She went to her bank. They looked at her $320K in student loans and stopped reading. Denied.
Here's what happened next. An SBA lender through our marketplace looked at the practice's cash flow — not her personal debt load. The practice generates $1.8M a year. DSCR was over 2x. She put 10% down, got a 10-year term, and closed in 30 days. Her monthly payment is $13,400. The practice nets $35K a month after all expenses.
The bank saw a borrower with $320K in student debt. The SBA lender saw a practice that prints money. Same person, completely different underwriting.
The Consolidation Wave Is Your Competition
Corporate buyers are swallowing up private practices. DSOs (dental service organizations) are buying dental practices at 6-8x EBITDA. Mars and VCA are doing the same in veterinary. Private equity firms are rolling up medical practices at record pace.
These buyers pay all cash. They close fast. And they're specifically targeting the profitable solo and small-group practices you want to buy.
But here's your advantage: SBA lets you put 10% down. A corporate buyer paying $1.2M cash needs $1.2M. You need $120K. That's a different conversation entirely. If you can move fast — get pre-qualified before the practice even lists — you compete with corporate on speed while keeping 90% of your cash in your pocket.
Practice Acquisition Numbers by Specialty
These are real ranges we see through our commercial financing network:
| Specialty | Avg Price | SBA Down (10%) | Monthly Payment | Practice Revenue | DSCR |
|---|---|---|---|---|---|
| Dental (solo) | $800K | $80K | $9,500 | $1.2M | 2.1x |
| Dental (group) | $2.5M | $250K | $29,600 | $4M | 2.3x |
| Veterinary | $1.5M | $150K | $17,800 | $2.2M | 2.0x |
| Medical (primary care) | $1M | $100K | $11,900 | $1.8M | 2.5x |
| Optometry | $600K | $60K | $7,100 | $900K | 2.1x |
| Chiropractic | $400K | $40K | $4,700 | $700K | 2.4x |
Those DSCRs are strong. A 2.0x+ DSCR tells the lender you're generating double what you need to cover the payment. That's why SBA lenders love healthcare acquisitions.
The Student Debt Reality
This is the single biggest misconception in healthcare lending.
Your bank looks at $300K in student loans on a $200K salary and sees a borrower drowning in debt. A healthcare-focused SBA lender sees it completely differently.
Healthcare lenders either exclude student debt entirely from your debt-to-income ratio or they use your income-based repayment amount — not the total balance. If you're on an IBR plan paying $800/month on $300K in loans, that $800 is what hits your ratios. Not the $300K headline number.
Your $300K in student loans with a $200K salary is a completely different risk profile than what the bank calculates. The bank's underwriting model wasn't built for healthcare professionals. SBA lenders who specialize in practice acquisitions were.
Get pre-qualified for a practice acquisition.
See What You Qualify For →Capital Stacking for Larger Acquisitions
A $2.5M group dental practice acquisition isn't just one loan. You might need:
- Practice acquisition: SBA 7(a) for the purchase price and goodwill
- Building purchase: SBA 504 if you're buying the real estate too
- Equipment upgrades: Separate equipment financing for new chairs, imaging, sterilization
- Working capital: 3-6 months of operating expenses while you transition
Each lender handles their piece. The SBA lender does what they're best at. The equipment lender knows dental equipment values. The working capital provider bridges the cash flow gap. Your blended cost is lower than trying to stuff everything into one loan.
Here's What Most People Get Wrong
They wait too long.
Good practices don't sit on the market. A profitable solo dental practice in a growing market gets multiple offers in weeks. The owner wants a clean, fast close — they don't want to wait 90 days while your bank figures out healthcare underwriting.
Get pre-qualified now. Before you even identify the practice. When the right one lists, you move with a pre-qualification letter in hand. You look like the corporate buyer — fast and certain — but you're paying 10% down instead of all-cash.
I've seen associates lose their dream practice because they started the financing process after finding the listing. By the time their bank said no and they found an SBA lender, a DSO had already closed.
Bobby's Take
Healthcare professionals are the best borrowers in our network. And I'm not just saying that.
Default rates on practice acquisition loans are among the lowest in all of SBA lending. Revenue is predictable — people always need dentists, vets, and doctors. Demand is recession-resistant. Patient relationships create sticky revenue that doesn't disappear overnight.
If a bank denied you because of student debt, they don't understand healthcare lending. That's not a knock on you. It's a knock on their underwriting model.
The SBA lenders in our network fund practice acquisitions every week. They know how to read a dental P&L. They know what a healthy collection rate looks like. They know that $320K in student debt on a doctor buying a $1.8M-revenue practice isn't risky — it's one of the safest loans they'll make all year.
Frequently Asked Questions
Can I get a practice acquisition loan with $300K+ in student debt?
Yes. SBA lenders who specialize in healthcare use income-based repayment amounts for your ratios, not total balances. A $300K loan balance with a $800/month IBR payment is treated very differently than a bank's standard debt-to-income calculation.
How much do I need for a down payment on a practice?
SBA 7(a) loans require 10% down for practice acquisitions. On a $1.2M practice, that's $120K. Some lenders accept seller financing for part of the down payment — meaning the retiring owner carries a note for 5% while you bring 5% cash.
How long does the practice acquisition loan process take?
Most SBA practice acquisition loans close in 30-45 days once you have a signed letter of intent. Getting pre-qualified takes 3-5 business days. That's why we tell every associate: get pre-qualified before you start looking, not after you find the practice.
