SBA 504 Dental Office Feasibility Study in Idaho

Idaho puts dental offices first, in the top spot of 39 for the state's 504 lending, while the state is seventh for dental lending when loans are counted nationally. Forty-one loans are recorded, totalling $28.8 million over FY2017 to FY2026, around a median of $437,000, 0.73x the nationwide 504 dental median, and half of loans lie from $313,000 to $774,000. A narrow middle half, with no franchised loans (0.00%), describes owner-dentists buying or building their own offices.

Two companies carry most of it

Capital Matrix, Inc. is credited with 22 loans and $17.6 million, ahead of East-Central Idaho Development Company at 9 loans and $3.8 million. The first carries over half the cell's loans at a higher average. The figures are a register of holders, not an assessment of either company. Ada County has 16 loans, Bonneville 5, Bannock 4, Jefferson 3, Canyon and Kootenai 2, and Bingham, Blaine, Caribou and Franklin 1 each.

Timing and cancellations

Counts rose from 4 and 2 in FY2017 and FY2018 to 7 in FY2020 and a peak of 10 in FY2021 at $4.8 million. After 5 in FY2022 and 2 in FY2023 came FY2024 with none. The newest years show 3 in FY2025 and 5 in FY2026, the latter with $8.4 million, the highest dollar year of the ten. At least 15.2% of approvals through FY2024 were cancelled, and the ceiling matches, so about one approval in seven did not close.

Loss data held back

No loss rate is shown for Idaho dental loans; the funded pool is too small, and the gap is not a zero.

What an Idaho dental study must establish

The study should state whether the borrower is building, buying a practice or moving into leased space, because each carries different risk. It should test the patient base for the office's town, the number of operatories justified by that base, insurance versus private-pay mix, and the cost of equipment and fit-out. With 504 financing the real estate, show the property's value as a dental office and as general medical or office space, and run debt service coverage on both loan pieces with the first year's collections below target.