SBA 7(a) Dental Office Feasibility Study in Maryland

Maryland dentists borrow well under the national level

Maryland's dental-office borrowers under SBA 7(a) take loans far smaller than their peers elsewhere. The state recorded 98 loans worth $64.2 million in total, at a median of $343,600, a mere 0.70x of the national level. Half of the loans run from $135,575 to $717,500. Maryland is 22 among states for the class, and dental offices hold 10 of 39 positions in the state, so the line is a mid-sized one. No loan carries a franchise tie, which is typical for dentistry and means each borrower is an independent practice or a group.

The holders and the geography

The top holder entry, Live Oak Banking Company, carries 13 loans worth $13.1 million. Manufacturers and Traders Trust Company has 12 loans worth only $2.1 million, The Huntington National Bank has 9 worth $9.5 million, 8 worth $4.2 million are shown for Wells Fargo Bank National Association, and Readycap Lending, LLC has 7 worth $3.8 million. The contrast in dollars per loan is considerable, but the entries are holders and say nothing of any lender's policy. Montgomery County has 28 loans and Prince Georges County 20, with Howard at 11, and Anne Arundel and Frederick at 10 each. Baltimore City has just 3. Approvals reached 19 loans and $8.4 million in FY2018, fell to 3 loans and $480,200 in FY2023, and rebounded to 19 loans and $19.4 million in FY2025.

Cancellation and charge-off floors

Attrition before funding is considerable: 16.4% or more of Maryland approvals dated through FY2024 were lost, and 17.9% under the broader reading. Of 39 loans funded in the earliest years, 5.1% show a charge-off to date and the five-year reading is also 5.1%, so such losses as occurred came early. Open loans mean both are minimums.

For a Maryland dental practice the study must show whether the loan buys an existing practice, builds a new office or expands one, since each carries a different risk. An acquisition turns on patient retention after the transition and on the seller's collections by procedure. A start-up needs a population and competitor analysis around the site, including nearby offices in Montgomery and Howard counties compared with the Prince Georges market. Operatory count, hygiene capacity and the ability to recruit a hygienist set revenue limits. Test debt service coverage with slower production in the first year, and set equipment and build-out costs against collections per operatory. An appraiser will value the practice and any real property separately, so the study should follow that split.