Dental Practice Acquisition and Expansion Financing in McKinney, Texas

Find the guide that fits your deal below — acquisition, partner buyout, equipment upgrade, or construction — then come back here if you need to compare your options side by side.

What to know about dental practice financing in McKinney, Texas

McKinney sits in one of the fastest-growing corridors in the country, and the dental market reflects that. Practice prices have followed population growth northward from Frisco and Plano, which means acquisition loans here are sized larger on average than in most Texas metros. Before you engage a broker or sign a letter of intent, it helps to know which loan structure your deal actually calls for — and what the numbers look like across each path.

Loan types at a glance

Financing type	Typical rate (2026)	Typical term	Down payment	Best for
SBA 7(a) — acquisition	8–11% APR	7–10 years	10–15%	Full practice purchase, goodwill-heavy deals
SBA 7(a) — real estate	8–11% APR	Up to 25 years	10–15%	Buying the building with the practice
Equipment financing	6–10% APR	Up to 10 years	10–20%	Chairs, imaging, CAD/CAM, sterilization
Business line of credit	10–15% APR	Revolving	None	Working capital, bridge gaps
Conventional bank — CRE	6.5–9% APR	15–25 years	20–30%	Office condo or build-to-suit

SBA 7(a) loans are the workhorse for practice acquisitions. The program guarantees up to 85% of the loan, which lets dental-specialist lenders approve deals that a conventional underwriter would decline — especially when a significant portion of the purchase price is goodwill rather than hard assets. The SBA caps loans at $5,000,000, so most single-practice acquisitions fit comfortably. Expect 30–45 days from completed application to funding, and plan for the lender to pull 12 months of bank statements and verify a debt service coverage ratio of at least 1.25x.

Credit thresholds matter more than most borrowers expect. The floor for SBA 7(a) approval sits at 640 FICO. At 680+ you're in good-credit territory and will see rates at the lower end of the 8–11% band. Fair-credit borrowers in the 640–679 range typically pay 1–3 percentage points above what a 700+ borrower receives on the same deal — which on a $1.2M acquisition translates to $12,000–$36,000 in extra interest per year. If you're near a threshold, it's worth running your credit report before you apply; roughly one in four credit reports contain errors that can be disputed and corrected before a hard pull. If your score is the limiting factor, the acquisition-by-credit guide walks through loan options by FICO band.

Equipment financing runs on a separate track from acquisition debt. A CBCT scanner, digital imaging suite, or chair package can be financed at 6–10% APR with terms up to 10 years (120 months under SBA rules), and the equipment itself typically serves as the primary collateral. McKinney practices expanding into orthodontics or oral surgery often layer equipment debt on top of an existing acquisition note — lenders evaluate the combined debt service against gross revenue, and most want total debt service to stay under 25% of monthly gross revenue. The Section 179 deduction limit of $1,220,000 in 2026 means most equipment purchases can be fully expensed in the first year, which affects the after-tax cost of the financing. For a head-to-head comparison of chair, imaging, and SBA equipment options specific to McKinney, the McKinney equipment financing comparison covers speed, down payment, credit requirements, and term by product category.

Construction and dental office build-outs — whether in a new McKinney development or a converted retail space — usually run through commercial real estate lending at 6.5–9% APR, amortized up to 25 years under SBA or 15–25 years on a conventional bank note. These loans take longer to underwrite because the lender is evaluating both the real estate and the practice's ability to service the debt during the build phase. Budget for a 20–30% down payment if you're going conventional; SBA 504 can bring that down to 10% on owner-occupied commercial property.

If you're still comparing cities or want to see how McKinney lender pricing stacks up against similar markets, the dental practice financing hub indexes guides by loan type, credit profile, and Texas market. Dentists in neighboring markets like Amarillo face different practice valuations and lender availability — worth a look if you're evaluating multiple locations.

• Minimum FICO for SBA 7(a): 640; 680+ for best pricing
• Typical down payment: 10–15% for SBA-backed acquisition loans
• SBA loan ceiling: $5,000,000
• Acquisition loan term: 7–10 years
• DSCR floor: 1.25x (lender's minimum; stronger deals are underwritten at 1.35x+)
• Bank statement review: 12 months standard
• SBA approval timeline: 30–45 days