Dental Office Feasibility Study in Washington

Washington dental lending close to national form

Washington's dental record sits near the national pattern: the median of $519,500 is 1.02x the national median, the location quotient is 0.97x, and none of the figures, whether median, cancellation floor or loss floor, is flagged against both Washington's lending in every class and dental lending nationally. The state ranks 11 of 54 on 222 loans worth $177.7 million from FY2017 to FY2026, and dentistry is 9 of 39 among Washington's classes.

Where the loans sit and who holds the 504 loans

King County leads with 74 loans, followed by Snohomish with 36 and Pierce with 24, then Whatcom with 13 and Clark with 11. The middle half of Washington loans spans $205,000 to $1.0 million. SBA 504 carried 49 loans, a meaningful share, led by Evergreen Business Capital with 22 worth $20.1 million and Northwest Business Development Association with 18 worth $12.9 million, with Ameritrust CDC at 7. Among the 173 7(a) loans, U.S. Bank, National Association holds 21 for $6.1 million, Live Oak Banking Company 20 worth $37.3 million, Banner Bank 11, First-Citizens Bank & Trust Company 10 worth $14.2 million and JPMorgan Chase Bank, National Association 9. No franchise loans appear (0.00%).

Few losses, a firm cancellation rate

For Washington dental approvals dated FY2017 to FY2024, cancellations reach a floor of 15.1%, unchanged at the ceiling. Losses are minimal: 0.86% of the 116 Washington loans funded across FY2017 to FY2021 are charged off, and 0.00% within five years, so the few losses arrived late. Both rates are floors. For a lender, the record supports the larger Washington loans; for a borrower, the cancellation figure is the risk that matters, and it argues for settling price, lease and equipment terms before approval.

In Washington, a dental study must test patient demand in the draw area against established practices, with particular care in King and Snohomish, where most loans sit. For a purchase, it verifies collections, patient counts and the hand-over plan; for a start-up, it tests the ramp. Cost covers acquisition or build-out and equipment, and for a 504 deal the office itself. Coverage should be shown after the owner's compensation, with a margin for a slow first year. A Washington appraiser will value the office as medical space, and that figure has to reconcile with the study's income view. No coding caveat applies to dental offices, and the lenders named hold the loans today, which is how SBA reports them.