SBA 7(a) loans finance the majority of most physician practice acquisitions. Here's how qualifying actually works, and what to expect from the timeline.
SBA 7(a) loans are the most common way physician buyers finance the bulk of a practice purchase — and for good reason: longer terms, lower down payments, and lenders who increasingly specialize in healthcare.
Unlike a conventional bank loan, an SBA 7(a) loan is partially guaranteed by the federal government, which lets lenders extend more favorable terms than they could on an unsecured basis — typically 10-year terms for practice acquisitions, with rates tied to prime plus a lender spread.
SBA underwriting for practice acquisitions has gotten more sophisticated as more lenders specialize in healthcare specifically. Here's what they're evaluating.
Expect 60–90 days from application to funding for most SBA 7(a) practice acquisition loans, though healthcare-specialized lenders can move faster. Get pre-qualified before you're deep in negotiations on a specific practice — it strengthens your position with sellers and avoids losing a deal to financing delays after you've already agreed on terms.
Important Disclaimer: The information on this page is for educational purposes only and does not constitute legal, financial, or tax advice. Every practice sale is unique. PracticeAmerica strongly recommends consulting a healthcare M&A attorney, a CPA experienced in medical practice transactions, and a financial advisor before making any decisions regarding a practice purchase or sale.
PracticeAmerica works with healthcare-focused banking partners who specialize in physician practice acquisitions.