Medical practice loans: SBA rates and terms
Medical Practices · NAICS 621111 · Program that usually fits: 7(a)
A medical practice loan is one of the strongest SBA applications a lender sees: physicians default rarely, revenue is insured, and the collateral problem that keeps banks away from new practices is exactly what the SBA guarantee solves. Lenders will finance 100% of a practice purchase or a start-up for a physician with a clean credit file.
Who qualifies
Physicians buying into a practice, buying a retiring doctor's practice, or opening their own office. Lenders want board certification or eligibility, a production history or employment contract, and for a purchase, the seller's tax returns and a practice valuation. Student debt is expected and doesn't disqualify you.
Which SBA program fits
7(a) for practice purchase or start-up
Covers the purchase price including goodwill, build-out, equipment and working capital, up to $5 million, usually on a 10-year term.
504 for the office building
Buying the medical office or building a new one fits a 504 loan at a fixed rate, with the practice's own 7(a) covering equipment and working capital.
7(a) for a partner buy-in
Partial buy-ins are eligible when the buyer will own at least 20% and the practice can show it supports the payment.
What borrowers use the money for
- Buying an existing practice, including goodwill and patient records
- Opening a new office: build-out, exam rooms and furnishings
- Imaging, lab and EHR equipment
- Working capital through credentialing and the first billing cycles
- Buying the medical office building
Typical loan amounts, down payment and terms
Practice purchases run $300,000 to $2 million, and start-ups $250,000 to $1 million. Many SBA lenders finance 100% of a practice purchase for physicians, with no equity injection, because the cash flow covers it. Terms are 10 years for the practice and 25 for real estate.
Example: a $750,000 loan
At today's maximum variable 7(a) rate of 10.00% over 10 years, the payment would be about $9,911 a month. Most well-qualified borrowers get a lower rate. Try your own numbers.
Today's rate caps
These are the SBA's maximum 7(a) rates with prime at 7.00%. See current SBA 7(a) rates and SBA 504 rates for the full picture.
| Loan amount | Maximum spread | Maximum variable rate today |
|---|---|---|
| $50,000 or less | Prime + 6.5 | 13.50% |
| $50,001 to $250,000 | Prime + 6.0 | 13.00% |
| $250,001 to $350,000 | Prime + 4.5 | 11.50% |
| Over $350,000 | Prime + 3.0 | 10.00% |
Related industries and lenders
Related industries
SBA lenders active nationwide
Questions about medical practice loans
Can a doctor get an SBA loan to buy a practice?
Yes. Practice purchases are a core 7(a) use. Many lenders offer 100% financing to physicians with good credit, covering goodwill, equipment and working capital. The seller's tax returns and a valuation support the loan amount.
How much can I borrow for a medical practice?
Up to $5 million on a 7(a) loan. Lenders size the loan to the practice's cash flow after your salary, typically keeping total debt service under 75% of available cash flow.
Does student loan debt stop me from getting a practice loan?
No. Lenders expect physicians to carry student debt and underwrite around it, as long as payments are current. Income-driven repayment plans are accepted at their actual monthly payment.
What interest rate does a medical practice SBA loan have?
Loans over $350,000 are capped at prime plus 3, or 10.00% today. Physicians with strong credit often see prime plus 1.5 to 2.5. Some lenders offer fixed rates for the full term on medical loans.
Can I use an SBA loan to start a practice from scratch?
Yes. Start-up practice loans fund build-out, equipment and 6 to 12 months of working capital. Lenders want a business plan with payer mix and a credentialing timeline, and they prefer a physician who has practiced in the area already.
Sources: SBA 7(a) terms, conditions and maximum variable rates; Federal Reserve H.15 selected interest rates (bank prime loan rate); October 2026 SBA 504 debenture pricing, as published by CDCs; SBA FOIA 7(a) and 504 loan-level data.