What financing do healthcare practices use?

SBA 7(a) for practice acquisition (most common), specialty healthcare equipment lenders for imaging/dental/surgical equipment, SBA 504 for owner-occupied medical real estate, working capital loans for cash flow, and equipment loans for routine purchases. Specialty healthcare lenders typically offer better terms than general lenders.

How much can a healthcare practice borrow?

SBA 7(a): up to $5M for practice acquisition or expansion. Equipment loans: up to $5M for major imaging or surgical equipment. CRE: up to $10M+ for owner-occupied medical office building (SBA 504 or conventional). Specialty healthcare lenders sometimes go higher on imaging-specific loans.

How does a doctor finance buying a practice?

SBA 7(a) is the workhorse: up to $5M, 10% borrower equity, 10-year amortization, prime + 2.5-3%. Most practice acquisitions also include a seller note (5-25% of purchase price on standby). Total close: 60-90 days from LOI.

Are imaging equipment loans different?

Yes — specialty imaging equipment lenders (Siemens Financial, GE Healthcare Financial, etc.) typically write better deals on MRI, CT, PET than general asset-based lenders. The asset class is deep, resale markets are clear, and OEM-financing knowledge of equipment lifecycle is built into the underwriting.

Can new doctors finance a practice?

Yes — SBA 7(a) for new-doctor acquisitions is a common path. Lenders consider professional licensure, residency completion, and projected income rather than the new entity's 2-year operating history. Doctor-loan structures (similar to physician mortgages) sometimes apply.

Healthcare Practice Financing Guide

Quick answer

SBA 7(a) is the workhorse for healthcare practice acquisitions and equipment up to $5M. SBA 504 for owner-occupied medical real estate (90% LTV). Specialty healthcare equipment lenders (Bank of America Practice Solutions, Live Oak Bank, US Bank Practice Finance, Siemens Financial, GE Healthcare Financial) typically offer better terms than general lenders. Acquisitions usually include 5-25% seller note. Working capital for cash flow and AR. The healthcare lending market is unusually deep because of dense specialty knowledge — matching the right lender is half the battle.

Get matched with a healthcare practice lender →

Healthcare practices have one of the deepest specialty lender markets in U.S. small business finance. Doctors, dentists, veterinarians, optometrists, and other practitioners borrow against established asset classes (predictable revenue, professional licensure, OEM-supported equipment) that lenders price aggressively when they understand the vertical. This guide covers the products, the lenders that actually fit, and the playbook for the most common transactions: acquisitions, equipment, real estate. For broader context see SBA loans and buying a business financing guide.

Financing Products by Need

Need	Product	Range
Practice acquisition	SBA 7(a)	$50K-$5M
New practice startup	SBA 7(a) + practice loan	$200K-$1.5M
Major imaging (MRI, CT, PET)	Specialty imaging lender	$500K-$5M+
Routine equipment	Specialty healthcare equipment loan	$25K-$500K
Owner-occupied real estate	SBA 504 or conventional CRE	$500K-$10M+
Working capital / AR	WCL or healthcare AR factoring	$50K-$1M
Buildout / TI	SBA 7(a) or term loan	$100K-$1M

Practice Acquisition Playbook

Most healthcare practice acquisitions use SBA 7(a) with seller financing. Representative $1.2M general dental practice purchase:

SBA 7(a): $1.0M (83% of purchase). 10-year amort, 10.25% APR. Monthly P&I ~$13,360.
Seller note: $120K (10% of purchase) on full standby for 24 months, then 5-year amort at 6%.
Buyer equity: $80K (~7% of purchase) cash + the standby seller note covers SBA equity requirement.

Specialty healthcare lenders frequently offer SBA 7(a) with higher LTV on practice acquisitions because they understand the cash flow stability of established practices.

Specialty Healthcare Lenders

The specialty market matters because pricing and terms differ materially from general SBA or asset-based lenders:

Live Oak Bank — one of the largest U.S. SBA lenders, with a deep healthcare practice book
Bank of America Practice Solutions — dental, medical, veterinary, optometry
US Bank Practice Finance — broad healthcare practice book
First Internet Bank Healthcare Finance — SBA-focused practice acquisitions
Wells Fargo Practice Finance — medical and veterinary
Stearns Bank — equipment-focused healthcare deals
Siemens Financial Services / GE Healthcare Financial — OEM captive financing for major imaging

Owner-Occupied Medical Real Estate

SBA 504 is the workhorse for medical-office building purchases by the practice that occupies them. 90% LTV, fixed CDC rate (~5.5-7% in 2026 on the 40% CDC portion), 25-year amortization. See SBA 504 vs conventional CRE for the full comparison.

For pure investment medical office (no owner-occupancy), conventional CRE is the path. See hard money vs conventional CRE.

Working Capital and AR

Healthcare AR is unusual: receivables come in waves from commercial payors (30-60 days), Medicare (15-30 days), Medicaid (30-90 days), and patient self-pay (variable). Specialty healthcare AR factoring exists for cash-flow-constrained practices but is typically more expensive than a working capital loan. Most established practices use lines of credit for routine working capital management.

New Doctor Practice Startups

Resident-to-attending or fellowship-to-attending doctors face a unique challenge: high projected income but no operating history. Most major SBA-active healthcare lenders (Live Oak, Bank of America Practice Solutions, US Bank) write practice-startup loans considering professional licensure, projected payor mix, and post-residency income rather than the new entity's 2-year history. Total package typically $250K-$1.5M for buildout + equipment + working capital.

Next Step

Whatever your healthcare financing need — acquisition, equipment, real estate, working capital — specialty lenders in this space typically beat general lenders. Get matched with a healthcare practice lender.