SBA 7(a) Dental Office Feasibility Study in Virginia

An independent profession with steady mid-size loans

Dental offices financed through SBA 7(a) in Virginia look much like the national class in size, with a median of $504,750 that is 1.02x the national 7(a) figure for dental offices, so the distinction here lies elsewhere: in ownership and in geography. No loan in the record is franchise-affiliated, with a share of 0.00%, and Virginia counted 126 approvals over the ten fiscal years, adding up to $111.6 million. Virginia ranks 17 among states by count, and the class stands 8 of 39 within the state. Half of the loans run from $217,200 to $1.1 million.

Fairfax County has 26 loans and Loudoun 23, with Prince William at 11, which together dwarf the rest of the state. Henrico has 8, Chesapeake City 7, and Montgomery, Richmond City and Virginia Beach City 4 each. A study for a practice outside the northern counties should not borrow its assumptions from the cluster, and one inside it should address how many dentists already operate nearby. By year, approvals were 24 in FY2017, fell to 6 in FY2021, rose to 20 in FY2025 and stood at 6 in FY2026.

The lenders

Live Oak Banking Company holds 19 loans worth $40.5 million, the largest book by far in dollars. Wells Fargo Bank National Association has 13 loans worth $4.5 million, and Bank of America, National Association holds 12 worth $4.6 million, so their loans are far smaller on average. United Midwest Savings Bank National Association holds 7 worth $9.8 million and First-Citizens Bank & Trust Company holds 6 worth $9.0 million. SBA files list holders; they do not tell a borrower what any holder requires.

Cancellation floors for Virginia dental loans approved through FY2024 are 11.0%, identical with the ceiling. Charge-offs among the 64 loans in Virginia's early dental cohort are 1.6% at least, to date and within five years alike. These are minimums on loans some of which remain open.

Tests for a Virginia practice loan

The study should begin with the dentist: years in practice, the production per chair that the practice or acquisition target has achieved, and how patients will transfer if the loan funds a purchase. Then it should test the payer mix, because insurance contracts and fee-for-service patients produce different collections. Build-out and equipment, including imaging, are the main costs, and a lender will look at how the loan size compares with the practice's collections. The appraisal of goodwill and of any real estate should be reconciled, with coverage shown for a year in which the transition costs the practice patients.