Dental Practice Construction Loan for New Location
Construction loans fund dental office build-outs, renovations, and ground-up construction. These specialized loans differ from standard practice financing with draw-based funding and interest-only periods.
Construction Loan Types
SBA 504 Construction
- Best for owner-occupied buildings
- Fixed rate on SBA portion
- 10% down payment
- 20-25 year terms
Conventional Construction
- Variable rates during construction
- Converts to permanent loan
- 15-20% down typical
Typical Build-Out Costs
| Item | Cost Per Sq Ft |
|---|---|
| Basic Dental Office | $150-$250 |
| High-End Build-Out | $300-$500 |
| Specialty (Ortho/Perio) | $250-$400 |
How Construction Loans Work
- Approval based on plans and budget
- Funds released in draws
- Interest-only during construction
- Conversion to permanent loan
Conclusion
Construction financing enables practice expansion and facility ownership. SBA 504 offers best terms for owner-occupied projects.
Planning a build-out? Contact DentalBridge.