Dental Office Feasibility Study in the Sacramento-Roseville-Folsom, CA Metro Area

Two counties, Live Oak and no franchises

Sacramento County, CA holds 57 of the 96 dental office loans around Sacramento-Roseville-Folsom, and Placer County, CA holds 30. The cell is worth $92.7 million for FY2017 to FY2026. Sacramento ranks 21 of 562 nationally, dentistry takes 8 of 39 in Sacramento, and 1.33x on the location quotient says dental offices weigh clearly more in local lending than in the national mix. The franchise share prints as 0.00%, so none of the 96 loans carries a flag.

The median is $636,000, 1.25x the national class median, and $217,250 and $1.2 million mark the quartile edges. Of the 96 loans, 76 used SBA 7(a) and 20 used SBA 504. Cancellation is 13.4% at the floor and 13.4% at the ceiling for FY2017 to FY2024 approvals. Loan Analytics withholds the charge-off rate and the FY2020 and FY2023 yearly counts, so those stay blank, never nil. The floor and the ceiling for cancellation are the same 13.4%, so very few approvals remain undisbursed.

Lenders

Live Oak Banking Company holds 17 SBA 7(a) loans and $38.2 million, a very large average. Its 17 loans carry far more dollars than the 10 of U.S. Bank, National Association, so two holders of similar size hold very different books. U.S. Bank, National Association keeps 10 loans but only $2.6 million, Wells Fargo Bank National Association 9 and $11.3 million, First-Citizens Bank & Trust Company 5 and $3.7 million, and Banner Bank 5 and $450,000. CDC Small Business Finance Corp. alone appears on SBA 504 (6 loans, $2.9 million). SBA's holder data stands behind these rows and says nothing about practice.

Approvals went from 16 loans and $12.8 million in FY2017 to 19 loans and $20.0 million in FY2018, 8 in FY2019 and FY2022, 13 loans and $17.4 million in FY2021, and then 6 loans and $2.3 million in FY2026. Sacramento's totals are limited to loans whose county the delineation of 2023 can place. The study must describe the payer mix in Sacramento and Placer Counties, because the file cannot.

What a Sacramento dental study has to settle

The analysis should size patient demand near the site, count practices already open in Sacramento and Placer Counties, and cost operatories, imaging and build-out against $636,000. Chair time, collections and hygiene income must repay the loan, and the real estate is appraised separately. The 96 approvals say nothing about any single project.