Dental Office Feasibility Study in the Riverside-San Bernardino-Ontario, CA Metro Area

Dentists in the Inland Empire: big loans, high cancellation

Dental offices in Riverside-San Bernardino-Ontario borrow large sums and see a lot of approvals fall through. The median loan is $575,850, or 1.14x the class's national level; the middle of the 134 loans runs from $350,000 to $1.0 million. Inland Empire dental approvals of FY2017 through FY2024 ended in cancellation at least 19.0% of the time. Out of 562 areas it is fourteenth for dental office loans, and dentistry is the eighth class of 39 inside it. The location quotient is 1.07x, so dentists have close to their national weight in local lending.

SBA approved $110.6 million for the 134 loans in all. San Bernardino County has 72 of them and Riverside County 62. The program split is 103 under SBA 7(a) and 31 under SBA 504, so 504 carries a sizeable share. Franchise flags appear on 0.00% of the loans.

Lenders and development companies

SBA's records name two 504 holders: Business Finance Capital (9 loans, $6.8 million) and CDC Small Business Finance Corp. (6 loans, $2.8 million). Among 7(a) holders, the largest by loan count is U.S. Bank, National Association, 20 loans for $16.8 million, with Live Oak Banking Company next at 10 loans for $17.4 million; Five loans apiece belong to Wells Fargo Bank National Association ($2.9 million) and JPMorgan Chase Bank, National Association ($2.4 million). Live Oak holds half as many loans as U.S. Bank for a larger total. These are holdings. They are no statement of what any institution would lend against.

Two items stay blank in this page's tables because Loan Analytics withholds them: a ceiling on cancellation and the loss rate so far. A blank is not a zero. The yearly record shows 17 loans in FY2017 and 10 in FY2018, a peak of 19 in FY2021, worth $21.3 million, a drop to 8 in FY2024, worth $8.2 million, and 15 in FY2026, worth $10.8 million.

Questions for an Inland Empire dental office

At the center is whether the practice can collect enough to carry a large loan. The study should model chairs, hygiene capacity and the provider's patient list, and separate the new patients a location will draw from those who follow a purchased practice. Payer mix should be tested for its effect on revenue per visit. Build-out for plumbing, suction, imaging and compliant rooms is expensive, and a purchase of the practice should rest on its tax returns. Where the borrower buys the building, real estate should be valued apart from goodwill. The cancellation floor shows how often an approval never turns into a funded loan. A loan whose county is absent from the July 2023 list is also absent from these figures.