SBA 7(a) Dental Office Feasibility Study in Indiana

One bank, and no losses yet

Indiana dentists lean on a single institution: The Huntington National Bank holds 36 of the 108 loans approved under 7(a) from FY2017 to FY2026, with $27.0 million of the $90.1 million approved in the class. Behind it come German American Bank with 9 loans and $2.0 million, United Midwest Savings Bank National Association (8 loans, $11.8 million), and Live Oak Banking Company with 7 and $16.2 million. All are SBA's holder records and none is a statement about how a bank treats borrowers. The concentration is what sets Indiana dental lending apart from the national picture, together with a median of $389,550 that is 0.79x of the nationwide figure.

Practice size and place

Typical dental loans start near $100,000 and reach $1.1 million, a range wide enough for both a startup operatory suite and a practice purchase. Franchise flags are close to absent, at 0.93%. Dental ranks 9 of 39 inside Indiana, and Indiana is 19 among states for the class. Marion County holds 25 loans, Allen 10, Hamilton 9, and Boone and St Joseph 5 each, so Marion County clearly leads while the rest is spread thinly.

Floors on cancellations and losses

Cancellation reached at least 11.0% of approvals made through FY2024, rising to 14.6% when loans that never paid out are included. Among 53 loans that funded early, no charge-offs appear on either measure, a clean 0.00%. That zero is a floor and no promise, because loans still open could fail, but it is a clean start.

Testing an Indiana dental request

Analysis should treat a dental practice as a patient-flow business. Count the households and employers around the site, the dentists already serving them, and the share of patients likely to hold private insurance rather than public coverage. Revenue per operatory and collections after insurance adjustments matter more than gross billings. Where the loan funds an acquisition, the study should test how much of the existing patient base stays after the sale and how the seller's transition is handled; where it funds a startup, the build-out and equipment schedule need quotes and a realistic ramp of new patients. Hygiene staff and associate wages belong in the margin, and debt service coverage should hold on a slower ramp. Because the wide loan range includes real-estate purchases, the appraisal must support the value of any property pledged.