SBA 7(a) Dental Office Feasibility Study in New York

Dental offices rank 11 of 39 among New York asset classes, yet the state is fourth in the country for 7(a) dental loans. From FY2017 to FY2026 the program approved 344 loans worth $182.4 million. Loan size is the first thing that sets the cell apart: the $250,000 median is 0.51x the 7(a) benchmark for dentists nationally, and $100,000 to $622,000 covers the middle half. Franchise flags are absent (0.00%), so these are independent practices, typically being started, bought from a retiring dentist, or fitted out with new chairs and imaging.

Two lenders tied at the top

Two lenders each hold 34 loans: Live Oak Banking Company, whose total is $30.4 million, and JPMorgan Chase Bank, National Association, whose total is $6.8 million, so Live Oak's average note is several times larger. TD Bank, National Association holds 25 worth $6.6 million, Manufacturers and Traders Trust Company 23 worth $3.2 million, and Genesee Regional Bank 22 worth $3.5 million. SBA reports the holder; it does not describe anyone's underwriting. NEW YORK County has 52 loans, NASSAU 35, SUFFOLK 32, KINGS and QUEENS 28 each, and WESTCHESTER 27, with ERIE and MONROE at 21 each upstate. Counts were highest in FY2017 at 56, lowest in FY2020 at 19, and stood at 46 in FY2024.

Where New York differs on losses

The charge-off floors are what separate the New York cohort from a typical dental cell. Among 160 New York loans that funded in FY2017 to FY2021, no fewer than 5.0% are charged off now, and 2.5% were by the fifth anniversary. Approvals dated FY2017 to FY2024 show a 10.4% minimum for cancellation before funding, or 12.1% if loans still waiting to be disbursed are counted as lost. Open loans can still change these numbers, which are therefore lower bounds.

Questions a dental study must answer

A study for a New York practice starts with patients: the households in the trade area, the insurance mix they carry, and the dentists already competing for them. It then tests the production side, covering operatories, chair time, hygiene schedule and the producer count needed to reach break-even. Build-out and equipment can be costly in New York leases, so the plan should itemize them against a ticket usually near $250,000. Model the payment on a ramp, since a new practice takes months to fill its schedule, and on a case in which key staff leave. An appraiser will separate practice goodwill from the lease and equipment. New York dentists should take program terms from SBA directly.