Dental Office Feasibility Study in Nevada

Nevada dental deals rarely fall through

Approved dental loans in Nevada almost always went on to close. Just 4.9% of Nevada's FY2017 to FY2024 dental approvals were cancelled, a floor whose ceiling is also 4.9%, and that rate sits below dentistry nationally by more than our distinctness margin while also standing apart from Nevada's cancellation record across every class. It is the one metric that sets this cell apart. The rest is close to the national pattern: 95 approvals between FY2017 and FY2026 worth $71.7 million, a median loan of $528,300 at 1.04x the class median for the country, a location quotient of 1.06x, a rank of 26 of 54 among states, and a place of 7 of 39 in the Nevada class ranking.

A 504-heavy, Clark County market

SBA 504 handled 30 loans and 7(a) 65, a substantial real estate share. Of the 504 loans, 12 sit with The Mortgage Capital Development Corporation and 10 with Nevada State Development Corporation, with California Statewide Certified Development Corporation adding 5. Live Oak Banking Company leads 7(a) with 13 loans worth $17.5 million; Wells Fargo Bank National Association follows with 9, worth $10.7 million. The middle half of loans spans $249,500 to $945,000, and franchise share is 0.00%. Clark County accounts for 60 approvals, Washoe for 21 and Douglas for 8. Volume swung widely, from 16 approvals in FY2017 and FY2021 to 3 in FY2020 and FY2025.

Losses so far

Of 54 Nevada dental loans funded across FY2017 to FY2021, 1.9% have been charged off, a floor somewhat above the national dental figure but not flagged, and the five-year reading is 0.00%. Open loans can still add to that.

A low cancellation floor suggests to a borrower that Nevada dental deals reaching approval have tended to be well prepared, which raises the standard a new application will be judged against. A study for a Nevada practice should show demand as patients per dentist and payer mix in the specific service area, with the practices already competing for them. Cost needs current quotes for operatories, imaging and the building or fit-out, and coverage of the debt should rest on the producing dentist's realistic collections and on the staff the schedule needs. For a practice purchase, the study should test the seller's production against what transfers to a new owner. When 504 money is buying the Nevada building, an appraiser will treat it as a medical suite with a defined pool of buyers, and the study's income should support that value.

Nevada's cancellation and loss figures are cohort floors; the named lenders hold the loans now, by SBA's report, and may not have originated them.