SBA 504 Dental Office Feasibility Study in Alabama

Dentistry is fourth among Alabama's 504 classes

Dental office takes place 4 of 39 among Alabama's classes under 504, though the state ranks 17 among others by count. The 27 loans total $19.1 million, with a midpoint of $460,000, 0.77x the national 504 dental midpoint, and an unusually tight middle half from $365,500 to $716,500. No loan is franchised, at 0.00%. The tight band points to practices buying or building small offices of similar size.

Three holders

Southern Development Council holds 12 loans worth $5.7 million. Birmingham Citywide Local Development Company holds 9 worth $9.3 million, so its tickets are the largest, and Florida Business Development Corporation holds 6 worth $4.2 million. SBA lists the present holders, whatever the originator was. Jefferson County has 5 loans, Saint Clair and Tuscaloosa 4, Baldwin 3, and De Kalb and Madison 2. The calendar is steady: 3 or 4 loans every year from FY2017 to FY2024, none in FY2025 and 1 in FY2026.

Where the record is silent

Alabama dental offices have no published cancellation percentage and no charge-off percentage; the cohorts fell below SBA's minimum, which is no comment on quality. Nothing in the coding qualifies the class, and the lessor note is irrelevant.

What an Alabama dental study has to test

Under 504, an Alabama dental study covers a practice and a building. For the practice, show the patients within reach, the dentists already serving them, the insurance mix, the production per chair and the plan for hygiene visits. For an acquisition, the price must match collections and overhead, and the study should estimate how many patients will stay after the transfer. For a start-up, give a month-by-month patient ramp. For the building, state the purchase or construction cost, the cost of plumbing, imaging rooms and operatory equipment, and the equity the dentist contributes. Coverage should be run on the combined payments with the loss of a hygienist or an associate as a case. Alabama counties vary widely in dentist supply, so say whether the site is in an underserved area. The appraisal should say what a medical or general office user would pay.