Physical therapy practice loans
Offices of Physical, Occupational and Speech Therapists, and Audiologists · NAICS 621340 · Program that usually fits: 7(a)
Therapy practice loans are usually 7(a) loans for opening a clinic, buying an existing practice, or adding a location. Physical, occupational and speech therapists and audiologists all borrow for similar reasons: build-out, treatment equipment, practice software and working capital while insurance claims are paid. Lenders like licensed health care borrowers with steady demand, but they study the payer mix closely, because Medicare, Medicaid and commercial insurers each pay at different rates and speeds.
Who qualifies
Licensed physical therapists, occupational therapists, speech-language pathologists and audiologists in private practice, including group practices and multi-site owners. Lenders check state licenses, Medicare and insurer credentialing, and clinical plus management experience. Partner buy-ins and buyouts from a retiring owner are common. Some states limit who can own a therapy practice, so lenders may confirm the ownership structure meets state rules before closing.
Which SBA program fits
7(a) for start-ups and buyouts
Funds a new clinic's build-out, equipment and working capital, or the purchase of an established practice including goodwill, on a 10-year term. Partner buy-ins also fit here.
Express for equipment and expansion
SBA Express loans under $500,000 suit treatment tables, aquatic or audiology equipment, or a second clinic with a faster decision. Rates run slightly higher than standard 7(a).
504 for buying a clinic building
Owners buying their office can use a 504 loan with a long fixed rate and about 10% down. The practice must occupy at least 51% of the building, and the debenture rate is fixed near 6.57%.
What borrowers use the money for
- Buying an existing therapy or audiology practice
- Clinic build-out with gym space and private treatment rooms
- Treatment tables, rehab gym equipment and audiology booths
- EMR, billing software and patient scheduling systems
- Working capital while insurance and Medicare claims are paid
Typical loan amounts, down payment and terms
Start-up clinics commonly borrow $150,000 to $400,000. Practice acquisitions range widely, often $300,000 to $1.5 million depending on collections and number of clinicians. Build-out, equipment and acquisitions run up to 10 years, and a building purchase up to 25. Expect at least 10% equity on start-ups and buyouts, sometimes more.
What lenders look at for a therapy practice
Payer mix and collections drive the decision. Lenders review the share of revenue from Medicare, Medicaid, commercial insurance and cash-pay patients, plus days in receivables and denial rates. Referral sources matter, since many clinics depend on a few physician groups or hospitals. For buyouts, they check whether the seller is the main producer and whether patients and referrals will stay. Clinician turnover and wage costs are watched closely, because empty schedules hit revenue fast.
Example: a $350,000 loan
At today's maximum variable 7(a) rate of 11.50% over 10 years, the payment would be about $4,921 a month. Most well-qualified borrowers get a lower rate. Try your own numbers.
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Get matched with an SBA lender
Answer four questions and see SBA lenders that fit your state, loan size and industry, with your maximum rate. Compare at least two quotes before you sign. Rates move monthly: check current SBA loan rates and the 504 rate.
Today's rate caps
These are the SBA's maximum 7(a) rates with prime at 7.00%. See current SBA loan 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 physical therapy & therapy practices loans
Can I get an SBA loan to open a physical therapy clinic?
Yes. Licensed therapists opening their own clinic are strong 7(a) candidates. Lenders want a business plan, a signed lease or letter of intent, equipment and build-out quotes, and evidence of referral sources. Clinical experience counts, and management experience helps.
How much does it cost to start a physical therapy practice?
A small outpatient clinic often needs $100,000 to $350,000 for build-out, equipment, software, marketing and working capital to carry the clinic until insurance payments arrive. Costs rise with aquatic therapy or larger gyms. Lenders want itemized quotes and a monthly cash flow forecast.
Can I buy an existing therapy practice with an SBA loan?
Yes. A 7(a) loan can cover goodwill, equipment and working capital. Lenders want three years of financials, collections reports and payer mix, and often ask the seller to stay on for a transition or carry part of the price as a note.
What interest rate will a therapy practice pay on an SBA loan?
With prime at 7.00%, a 7(a) loan from $250,001 to $350,000 is capped at 11.50%, and loans above $350,000 at 10.00%. Many lenders price licensed health care practices below the cap when credit and collections are strong.
Do audiology and speech therapy practices qualify too?
Yes. Audiologists and speech-language pathologists fall under the same industry code and are eligible on the same terms. Audiology loans often include sound booths and diagnostic equipment, plus hearing aid inventory and working capital. Lenders review payer mix the same way.
Sources: SBA 7(a) terms, conditions and maximum variable rates; Federal Reserve H.15 selected interest rates (bank prime loan rate); November 2026 SBA 504 debenture pricing, as published by CDCs; SBA FOIA 7(a) and 504 loan-level data.