Arranged through SBA partner banks
SBA 7(a) for practice acquisition, buy-in, and real estate.
SBA 7(a) loans of $50,000 to $5,000,000 over up to 10 years, 25 with real estate, arranged through MedStream Capital's SBA partner banks. Requires a 680+ personal FICO, a 1.25× DSCR, three years of tax returns, and a 10% equity injection. 60 to 120 days to close — and MedStream Capital funds the gap in-house when the seller's date is sooner.
Soft pull·No impact on personal credit·4-minute application·No patient data requested
SBA 7(a) loans are arranged through MedStream Capital's SBA partner banks.
We are not an SBA lender and we do not pretend to be one. What we do is read the file in-house first, tell you honestly whether it will clear SBA underwriting, place it with a partner bank that has a dental or medical PLP desk, and — if the seller's timeline is shorter than the bank's — fund the gap ourselves while the SBA note gets built.
Published in full
Every SBA 7(a) requirement, in one table.
These are the partner banks' working thresholds as of October 2026, not MedStream Capital's. They are published here because nobody else publishes them.
| SBA 7(a) requirement | Threshold |
|---|---|
| Loan amount | $50,000 – $5,000,000 |
| Term, practice purchase | Up to 10 years |
| Term, with commercial real estate | Up to 25 years |
| Equity injection, change of ownership | 10% of total project cost |
| Seller standby note | May cover up to half the injection (5% of project) |
| Minimum personal FICO | 680 working threshold; 700+ for better pricing |
| Debt service coverage ratio | 1.25× minimum, on a completed fiscal year |
| Projections as a basis | Not accepted for DSCR as of October 1, 2026 |
| Tax returns required | 3 years, business and personal |
| Buyer clinical experience | 2+ years of production, typically $60,000–$100,000+/month attributable collections |
| Independent valuation | Required above a $350,000 purchase price |
| Quality of earnings report | Typically required at $3,000,000+ |
| Personal guarantee | Any owner at 20% or more |
| SBA upfront guaranty fee | 3% – 3.75% of the guaranteed portion |
| Time to close, specialist PLP lender | 60 – 75 days |
| Time to close, generalist lender | 90 – 120 days |
Valuation
What practices sell for.
| Practice type | Typical valuation |
|---|---|
| General dental, solo or small group | 60% – 85% of trailing-12-month collections, or 3× – 5× adjusted EBITDA |
| Dental specialty or multi-location group | 5× – 7×+ adjusted EBITDA |
| Median SBA dental practice loan | $473,000 |
| Median SBA dental acquisition loan | $853,000 |
| Solo GP acquisition, typical loan | $400,000 – $700,000 |
| Established GP acquisition | $800,000 – $1,400,000 |
| Group or specialty acquisition | $1,500,000 – $3,200,000 |
A worked deal, in dollars
A practice with $340,000 of adjusted cash flow, less a $180,000 buyer salary, leaves $160,000 for debt service. At the 1.25× coverage SBA requires, that supports about $128,000 a year in payments — roughly a $780,000 loan over 10 years at current pricing. On a $780,000 project the buyer's 10% injection is $78,000, and a seller standby note can cut the cash out of pocket to about $39,000.
When the seller wants 45 days and the bank needs 90
The most common way a practice acquisition dies is a timeline mismatch. A dental-specialized SBA desk closes in 60 to 75 days and a generalist bank takes 90 to 120, while sellers routinely want 30 to 60. MedStream Capital funds the gap in-house: the earnest money, the 10% equity injection, the first payroll run under new ownership, or the transition-period working capital. $40,000 to $150,000, funded in 24 hours, structured so the SBA note takes it out at close. Tell us the closing date on the first call.
Disclose the bridge to the SBA lender. Some lenders prohibit a borrowed equity injection, and we coordinate with them directly rather than letting it surface at underwriting.
The bridge, in four numbers
- $40,000 – $150,000 typical bridge size
- 24 hours to fund after signing
- 60 – 75 days specialist PLP close
- 90 – 120 days generalist bank close
The bridge is a MedStream Capital in-house product. The SBA note is the partner bank's.
Published in full
MedStream Capital eligibility criteria
These are our actual requirements for working capital and line of credit. There is no additional hidden screen.
| Minimum time in business | 6 months |
|---|---|
| Minimum monthly revenue | $15,000 in deposits across all business accounts |
| Minimum credit score | None. There is no FICO minimum on working capital or line of credit. |
| Funding range | $25,000 to $2,000,000 |
| Documents required | 4 months of business bank statements |
| Documents never required | Tax returns, P&L, patient records |
| Time to decision | Same business day on complete files received before 2:00 p.m. ET |
| Time to funding | 24 hours after a signed contract |
| Application time | 4 minutes |
| Contract length | 2 pages |
| Prepayment | Discount of up to 30% of the remaining balance. No prepayment penalty, ever. |
| Business location | United States — all 50 states and the District of Columbia |
| Bank account | A U.S. business checking account in the practice's legal name |
| Entity types accepted | PC, PA, PLLC, LLC, S-corp, C-corp, and sole proprietors with an EIN |
| Licensure | Active state professional or facility license for the practice or its supervising provider |
| Credit pull | Soft pull at application. No impact on personal credit score. |
SBA 7(a) — the partner bank's criteria, not ours
| Minimum personal FICO | 680; 700+ for best pricing |
|---|---|
| Debt service coverage ratio | 1.25× on a completed fiscal year |
| Tax returns and P&Ls | Three years |
| Equity injection | 10% of project; up to half may be a seller standby note |
| Independent valuation | Required above a $350,000 purchase price |
| Personal guarantee | Any owner at 20% or more |
| Time to close | 60 to 120 days |
Who actually gets funded. Practices with at least 6 months of operating history and $15,000 a month in deposits. In-house advances run $25,000 to $2,000,000. Practices under 24 months old are funded, but typically at $25,000 to $75,000.
Different criteria apply to SBA loans, term loans, and medical-claims factoring. Those are arranged through our bank and specialist partners and carry their own underwriting. SBA 7(a) through our partners generally requires a 680+ personal FICO, a 1.25× debt-service coverage ratio, three years of tax returns, and a 10% equity injection. Those thresholds are the partner bank's, not ours.
MedStream Capital is not a HIPAA covered entity and not a business associate. We underwrite on business financial records — bank statements, deposits, and the practice's own stated revenue. We do not request, receive, access, or store protected health information, and we do not connect to your EHR, practice management system, or clearinghouse.
FAQ
SBA 7(a), answered.
Can I get an SBA loan to buy a dental practice with no money down?
No. SBA 7(a) requires a 10% equity injection on a change of ownership. Up to half of that — 5% of total project cost — may be a seller standby note, which cuts the cash out of pocket but does not eliminate the requirement. On a $780,000 project the injection is $78,000, and a seller standby note can bring the buyer's cash to roughly $39,000.
How long does an SBA 7(a) practice loan take to close?
60 to 75 days with a specialist PLP lender that runs a dental or medical desk, and 90 to 120 days with a generalist bank. Sellers routinely want 30 to 60 days, which is the single most common reason a practice acquisition dies.
Does MedStream Capital fund SBA loans directly?
No. MedStream Capital is not an SBA lender. SBA 7(a) loans are arranged through MedStream Capital's SBA partner banks, which underwrite, approve, and fund them under their own terms. What MedStream Capital does in-house is read the file first, tell you honestly whether it clears SBA underwriting, place it with a bank that has a dental or medical PLP desk, and fund the timing gap if the seller's date is shorter than the bank's.
What debt service coverage ratio does SBA 7(a) require?
1.25× minimum, measured on a completed fiscal year. As of October 1, 2026, projections are not accepted as the basis for DSCR. A practice with $340,000 of adjusted cash flow less a $180,000 buyer salary leaves $160,000 for debt service, which at 1.25× coverage supports about $128,000 a year in payments — roughly a $780,000 loan over 10 years at current pricing.
Can I use an advance for the SBA down payment?
Handle this carefully. Some SBA lenders prohibit a borrowed equity injection outright. Disclose any MedStream Capital bridge to the SBA lender up front and we will coordinate with them directly. Where the lender permits it, MedStream Capital funds the earnest money, the injection, the first payroll run under new ownership, or transition working capital — $40,000 to $150,000, funded in 24 hours, structured so the SBA note takes it out at close.
Related: the working capital bridge, partner term loans, the published benchmark tables, or what we do and do not see.
Tell us the closing date on the first call.
If the seller's timeline is shorter than the bank's, MedStream Capital funds the gap in-house in 24 hours.