The definitive guide to medical business loans
Find out if your medical practice qualifies for an SBA 7‑A loan, the typical APR, terms, and how to quickly see a rate—no credit hit.
Yes—most medical practices can secure an SBA 7‑A loan with a 620‑679 FICO and $200k+ annual revenue, getting 8–10% APR and 48‑month terms.
Yes—most medical practices can secure an SBA 7‑A loan with a 620‑679 FICO and $200k+ annual revenue, getting 8–10% APR and 48‑month terms. See the rate you qualify for in 2 minutes—no credit‑score hit.
The specifics
An SBA 7‑A loan typically targets practices with 2–4 years of operating history and a minimum gross annual revenue of $200k forafinancial.com. The lender looks at credit, debt‑service coverage, and collateral. A fair‑credit FICO of 620‑679 can earn an 8‑10% APR, plus a 3‑5% premium shown by fblake.bank. The debt‑service coverage ratio must be at least 1.25× and the monthly debt service should stay 8‑12% of gross revenue crestmontcapital.com. A 40% debt‑to‑income cap is also standard crestmontcapital.com. For equipment, the loan may cover 80‑85% of the purchase price, with a 9‑13% APR and a 48‑84‑month term fblake.bank. A 15‑20% down payment is typical fblake.bank. Use the affordability calculator to see how your revenue translates into monthly payments.
The cross‑border example of practice acquisition in Garland, Texas is covered in this partner guide [https://howtofundapractice.com/garland-tx].
Qualification & edge cases
Borrowers with a FICO below 620 may still qualify for a medical practice loan but usually face a higher APR of 12‑15% fblake.bank. New practices operating under two years often need a co‑signer or personal guarantee bankofamerica.com. Lenders may request a detailed business plan and site analysis for acquisitions or relocations bankofamerica.com. Veterinary and dental specialists should also explore Section 179 deductions, which allow up to $1,220,000 in equipment write‑offs.
Background & how it works
SBA 7‑A loans blend federal backing with private‑sector flexibility. The application process normally takes 60‑90 days for acquisition and 30‑45 days for equipment, after which most borrowers receive an offer within two weeks bankofamerica.com. The lender reviews credit reports, cash‑flow statements, collateral values, and compliance with SBA guidelines bankofamerica.com. Once approved, the borrower pays a 1‑3% origination fee and adheres to the agreed APR and term bankofamerica.com.
Bottom line
An SBA 7‑A loan is the most common path for medical practices with fair scores and solid revenue. It offers 8‑10% APR and 48‑month terms—use our affordability tool to see your exact rate in seconds.
Disclosures
This content is for educational purposes only and is not financial advice. clinicbusinessloans.com may receive compensation from partner lenders, which may influence which products are featured. Rates, terms, and availability vary by lender and applicant qualifications.
Sources
Related questions
What is the minimum credit score required for a medical practice loan?
A minimum FICO of 620‑679 is typically required for a fair‑credit SBA 7‑A loan.
How long does it generally take to get an SBA 7‑A loan for a medical practice?
The approval process usually takes 60‑90 days for practice acquisition and 30‑45 days for equipment financing.
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