SBA 504 Dental Office Feasibility Study in Wisconsin

One development company holds almost everything

WBD, Inc. holds 34 of the 36 Wisconsin dental loans under 504, with $28.3 million of the $29.5 million total, a concentration of loans with one holder. The midpoint of $627,000 is 1.04x the national 504 dental midpoint, and the middle half is tight, from $516,750 to $966,500, which suggests a consistent product: a practice buying or building its own space. Wisconsin ranks 9 among states on loan count; dental office is the 11 of 39 class at home. Not one loan is franchised (0.00%).

Counties and calendar

The counties are spread thin: Milwaukee and Waukesha have 3 loans each, and Dane, Dunn, Eau Claire and La Crosse have 2. Approvals peaked at 8 loans in each of FY2021 and FY2022, which brought $6.2 million and $10.0 million, and FY2026, the last full year in the file, shows none, at $0. The holder shown is whoever SBA lists now, so WBD's share counts loans that sit with it today.

Outcome floors

Wisconsin dental approvals through FY2024 show cancellation of at least 6.3%, ceiling the same. Wisconsin's charge-off rate is unpublished, as the funded cohort was smaller than SBA allows for a rate; Loan Analytics prints no number for it. A low cancellation figure fits a product in which the borrower already knows the property and the practice.

What a Wisconsin dental study has to test

Because 504 finances the building, a dental study here has two parts. For the practice, show the patient base in the draw area, the dentists already serving it, the production per chair and the hygiene schedule, and the number of operatories planned. For the property, show purchase price or construction cost, the equity contributed, and the cost of dental plumbing, imaging rooms and cabinetry. Coverage should be tested on the combined payments of the first and second loans. A start-up needs a ramp of new patients by month, while an acquisition needs a price that matches collections. Test the loss of an associate. The appraisal of a dental building leans on the practice's income, so the study should also state what the real estate would bring to a general medical or office user.