The eligibility requirements for an SBA 504 loan for a dental office are as follows:

• The business must be a for-profit, operating small business
• The business must occupy at least 51% of the project
• The business must have a tangible net worth of less than $15 million and an average net income of less than $5 million after taxes for the past two years
• The business must be able to demonstrate the ability to repay the loan
• The business must be located in the United States

For more information, please visit the SBA website.

An SBA 504 loan can be a great option for dental offices looking to purchase real estate and buildings, construct new buildings, and purchase necessary equipment. These loans are designed to help business owners secure the most crucial elements to their success – real estate, facilities, and equipment. Additionally, you can borrow a significant amount more with go-green projects than with standard business projects.

For more information, please visit SBA 504 Loans for Dental Offices and SBA 504 Loans for Dental Labs.

The steps to apply for an SBA 504 loan for a dental office are as follows:

1. Verify eligibility. Make sure that you meet the eligibility requirements for the program. Note that there are quite a few reasons for disqualification, including defaulting on student loans by a major owner within the business, criminal history, owning too many assets, and poor credit.
2. Check your credit. Note that the SBA has no credit requirements. However, the lender that you work with will. We discuss credit in the section of this site dedicated to SBA 504 loan rates.
3. Find a lender/CDC. You need to find either a lender that offers 504 loans, or a CDC in your area that can connect you with such a lender.
4. Pre-qualification. Before you start completing your SBA loan application, you should get prequalified. Your CDC or lender can do this for you. To prequalify you, the CDC will need:
   • Three years of personal and business tax returns
   • Interim financial documents
   • A personal financial statement
5. Decide on your purchase. With the pre-qualification in hand, you can begin looking at purchase options, vetting contractors, comparing equipment choices, and more.
6. Complete the application. Once you’ve decided on what you’re purchasing and have been prequalified, you can begin the application process. You’ll work with your CDC and/or lender to complete a full SBA loan application. You will also finalize what you are seeking in loan terms at this time. There are quite a few things that will be addressed during the application process, although some will have been touched on during pre-qualification. These include:
   • Your creditworthiness
   • Your business’s eligibility for the 504 loan program
   • Your business’s current level of indebtedness
7. Find a lender. If you have not already done so, you will need to find a lender that offers 504 loans. Your local SBA office can help you connect with an SBA-approved lender.

We’re here to help you get the commercial financing you need. Simply fill out the form below for a risk-free consultation and a free SBA loan quote!

The repayment terms for an SBA 504 loan for a dental office depend on the loan amount and the project. Generally, the loan is repaid over 10 or 20 years, with the first 10 years being interest-only payments. The loan is typically amortized over 20 years, with the remaining 10 years being principal and interest payments. The interest rate is fixed for the life of the loan and is based on the current market rate.

For more information, please visit the SBA 504 Loan Program page.

The fees associated with an SBA 504 loan for a dental office include the SBA Guarantee Fee (0.5% of the loan’s total value), Funding Fee (0.25% of the loan’s total), CDC Processing Fee (1.5% of the loan’s total), Closing Costs (variable depending on loan amount), Underwriting Fee (variable depending on loan amount), Servicing Fees (fees charged by the loan servicer over time, reducing in five-year increments), Prepayment Premiums (penalties for paying off your loan early, reducing over time), Lender Participation Fee (a one-time fee charged to your conventional lender, equal to 0.5% of the first lien), and Additional Fees (a number of other fees may be charged during this process, including recording fees, closing fees assessed by the title company, title insurance fees, attorney’s fees, and more).

For more information, please visit https://sba504.loans/sba-504-blog/what-are-the-fees-for-the-sba-504-loan.