SBA Loan vs Conventional Loan for Dental Practice
Choosing the right financing affects your cash flow for years. SBA loans offer higher leverage while conventional loans provide faster approval and lower fees.
Quick Comparison
| Factor | SBA 7(a) | Conventional |
|---|---|---|
| Down Payment | 10-15% | 20-30% |
| Loan Term | 10-25 years | 5-15 years |
| Interest Rate | Prime + 2.75-4.75% | Prime + 1-3% |
| Approval Time | 60-90 days | 30-45 days |
| Collateral | Practice + personal | Practice primarily |
| Guarantee Fee | Up to 3.75% | None |
When to Choose SBA
- Limited down payment
- First-time buyer
- Practice price >$250K
- Want longer terms
- Working capital needs
When to Choose Conventional
- Strong down payment (25%+)
- Experienced buyer
- Need fast closing
- Want lower total cost
- Simple transaction
Conclusion
SBA loans enable higher purchase prices with lower down payments. Conventional loans cost less overall for qualified buyers with strong equity. Match financing to your capital and timeline needs.
Financing guidance? Contact DentalBridge.