Dental Office Feasibility Study in the Boston-Cambridge-Newton, MA-NH Metro Area

Dental office lending in Boston

Boston supplies 164 SBA loans to dentists' offices from FY2017 and FY2026, adding up to $110.0 million in gross dollars. By rank, Boston is 9 of 562 among metro and micro areas, and dentists' offices take 7 of 39 inside the area's own asset classes. The midpoint loan in Boston is $368,500, below the country's class median by 0.73x. Compared with the nation, dentists' offices fill a smaller share of Boston lending, a location quotient of 0.82x. The middle half of loans sit between $132,500 and $870,775.

Dental office programs, franchise share and lenders

Under 7(a), Live Oak Banking Company leads at 36 loans ($51.6 million); behind it come Eastern Bank (24) and Salem Five Cents Savings Bank (8). A franchise share is not printed for Boston dental offices, because Loan Analytics withholds cohorts of under 30 loans. For 504 financing, Bay Colony Development Corporation holds 18 loans. Of the 164 Boston dental office loans, 136 are 7(a) and 28 are 504. Each lender above is printed as today's holder of the loans in SBA's files; that shows a reader where the paper sits, for the record, and it is silent on how a bank lends or what it would ask of an applicant in Boston.

Place and timing for dentists' offices

Middlesex County, MA holds the most loans at 47; Essex County, MA follows with 39, and Norfolk County, MA has 26. By year, at present, FY2021 is the high mark for dental offices in Boston (23 loans, $24.5 million) and FY2022 the low (7 loans, $5.6 million).

Floors that may only move up for dental practices

Charge-offs stand at 0.00% to date across 82 disbursed Boston approvals from FY2017 to FY2021, a floor that may climb; 0.00% came inside five years of approval. Boston dental office loans from FY2017 to FY2024 print a cancellation floor of 15.9%, and a maximum of 15.9% if undisbursed loans count as called off. Boston here is a county grouping paired by name to the 2023 area list, so dental office approvals whose county cannot be placed are missing from Boston as well.

What a study of dental practices in Boston has to test

The first test is demand for dental offices in Boston: rival practices and groups, then insurance against fee-for-service. Lenders have approved 164 loans in the category, yet that count tells a borrower little about one address until area numbers are built. In the appraisal, a Boston lender will ask about a start-up's chair fill and goodwill after the sale. No study can promise an approval, but a study helps a lender and an applicant use the same SBA record for Boston. On cost, hygienist and assistant pay and price paid against collections must appear in the budget for dental practices, which can then be read beside the $132,500 to $870,775 range institutions in Boston have used. Coverage ought to be tested against a sluggish opening, because some Boston dental office loans did not go as approved.