SBA 504 Dental Office Feasibility Study in Nevada

Rank 4 in the state, spread over the two metros

Among Nevada's SBA 504 classes dental offices take 4 of 39 places, while on loan count the state is 16 among states. The program's tally for FY2017 through FY2026 is 30 loans and $18.1 million. Dentists here borrow near the national norm, a $547,500 median that is 0.91x the 504 benchmark, with ordinary loans in a tight band of $409,000 to $779,500, which points to dentists buying similar small buildings. A dental practice usually needs plumbing, vacuum and imaging rooms in every operatory, so the shell is rarely the whole project. Franchises are absent (0.00%). Clark County has 17 loans and Washoe 12, with a single loan in Elko, so Las Vegas and Reno account for nearly everything.

Development companies, one from outside the state

The Mortgage Capital Development Corporation shows 12 loans and $8.2 million, Nevada State Development Corporation shows 10 loans and $5.7 million, and California Statewide Certified Development Corporation shows 5 loans and $2.5 million. The third is a California organisation, which indicates that 504 financing in Nevada is not limited to home-state companies. All are present holders and tell a dentist nothing about their approach.

Timing and outcomes

Volume was uneven: 8 loans and $5.2 million in FY2021, 5 in FY2019 and FY2022, only 1 loan in FY2018 and FY2023, and no activity at all, 0 loans and $0, across the final two years. On Nevada dental loans approved up to FY2024, cancellation is at least 6.7%, and 6.7% again is the ceiling. A loss percentage is withheld because too few older loans funded; it is not zero.

What a Nevada dental study has to settle

A dental practice file has two halves. The practice half shows patient base and payer mix, chair count, hygiene capacity, collections per visit and the dentist's own production history or, for a new practice, a realistic ramp. The property half, which a 504 loan funds, shows the building: size, plumbing and compressor needs, parking, visibility and price against comparable sales. Nevada's growth means competing practices and new supply must be counted. Even a slow first year must leave cash for the payment, and the appraisal should say how readily the space could be converted to another medical or office use. Nevada's metros differ in rents and competition, so the study should name the submarket and compare it with the practices already there, not rely on statewide averages.