SBA 504 loans for Medical Practices
Over the last decade, physicians have used SBA 504 financing to fund more than $3.7 billion in real estate, build-outs, and equipment. We help you secure the same financing — with 10% down, 25-year fixed rates, and a team that knows the 504 program inside out.
The Medical Practice SBA 504 market, by the numbers
What ten years of Medical Practice SBA 504 loans — pulled directly from the SBA's own data — tell us about how operators finance this business.
Source: SBA 504 loan approvals for NAICS 621111, 621112 , FY2016–FY2025. Data via FOIA request, updated quarterly.
What an SBA 504 loan covers for a Medical Practice
SBA 504 financing is built for long-term assets — the real estate, infrastructure, and major equipment that anchor a Medical Practice business.
Property purchase & land
Own the building you practice in instead of renting it. Whether it's a suite in a medical plaza or a standalone office, 504 lets you buy with 10% down and turn your biggest monthly expense into equity you actually keep.
- Medical office condo units
- Standalone office buildings
- Suites in a medical plaza or MOB
- Land for a future office
- Buying out your current lease
Ground-up construction
Build a practice designed around how you deliver care. 504 covers the shell and the clinical build-out — the exam rooms, the procedure suites, and the infrastructure that a medical space demands from day one.
- New standalone office builds
- Full clinical interior build-outs
- Exam and procedure rooms
- Imaging and lab infrastructure
- HVAC, plumbing, and med-gas systems
Expansion & second locations
Growing your panel or adding partners? Use 504 to open a second location, take over the suite next door, or bring on a retiring physician's practice — without draining the cash flow that keeps the doors open.
- Second and third practice locations
- Adding exam or procedure rooms
- Acquiring a retiring physician's practice
- Expanding into an adjacent suite
- Renovating a space you've acquired
Equipment with long lives
The clinical technology that defines a modern practice — and lasts long enough to finance. 504 is built for big-ticket equipment with a long useful life, so you spread the cost over the years it'll actually serve your patients.
- Imaging systems (MRI, CT, X-ray, ultrasound)
- Procedure and surgical suite equipment
- Exam room and diagnostic tools
- Sterilization systems
- Practice-management IT and networking
How SBA 504 financing is structured
Three pieces of capital come together so you only put 10% down on a project that might cost millions.
First lien (50%)
APC funds this directly — we're a private direct lender, not a broker. Term and rate quoted upfront.
SBA 504 / CDC (40%)
Second lien, fixed for 25 years through a Certified Development Company. Rates locked at funding.
Borrower equity (10%)
Cash down, retained equity in existing real estate, or seller carry-back in some cases.
What a 504 project for a Medical Practice looks like
Three illustrative examples showing typical deal structures, financing splits, and project scopes.
A growing physician group scattered across three leased suites built one ground-up office to bring everyone under a single roof. Because it was an established, cash-flowing practice on general-purpose real estate, the build came together at 10% down. One 504 loan wrapped the land, the clinical build-out, and the fixed rate over 25 years.
A physician bought the practice they'd worked in for years — the patient panel, the equipment, and the medical office building it occupied — as the founding doctor retired. As an established, cash-flowing practice, the purchase penciled at just 10% down. The 25-year fixed 504 rate locked the payment and made the transition to ownership predictable.
A specialty practice opened a second location and built out an in-house imaging suite to keep diagnostics under one roof. Rather than pulling cash from the flagship office, the owners used a 504 loan at 10% down on general-purpose medical real estate. The long fixed term protected cash flow while the new location filled its schedule.
Owning your Medical Practice property beats leasing — here's the math
Slide the inputs to match your situation. The equity number on the right is what you'd have in 10 years if you owned instead of leased.
Where Medical Practice SBA 504 money is going
Geography, deal sizes, top CDCs, and the banks making it happen — all pulled from a decade of SBA data.
Top 10 states by loan volume
| State | Loans | Total funded | |
|---|---|---|---|
| 1 | California | 515 | $602M |
| 2 | Florida | 219 | $181M |
| 3 | Texas | 107 | $107M |
| 4 | New York | 100 | $101M |
| 5 | Nevada | 87 | $93M |
| 6 | Arizona | 48 | $41M |
| 7 | Utah | 47 | $53M |
| 8 | Georgia | 47 | $36M |
| 9 | Illinois | 42 | $25M |
Deal size distribution
Top CDCs financing Medical Practices
These Certified Development Companies have funded the most Medical Practice SBA 504 deals over the past decade. Click any CDC for their full profile.
Top 10 third-party lenders for Medical Practice deals
| # | Lender | Loans | Volume |
|---|---|---|---|
| 1 | JPMorgan Chase Bank | 199 | $240M |
| 2 | Wells Fargo Bank | 58 | $85M |
| 3 | Zions Bank | 42 | $53M |
| 4 | First-Citizens Bank & Trust Company | 37 | $79M |
| 5 | City National Bank | 37 | $56M |
| 6 | Bank of America | 35 | $50M |
| 7 | PNC Bank | 24 | $18M |
| 8 | Regions Bank | 23 | $26M |
| 9 | Banco Popular de Puerto Rico | 23 | $9M |
| 10 | Truist Bank | 22 | $30M |
What it takes to qualify
SBA 504 has clear, objective criteria. Most Medical Practice operators we work with qualify.
Business requirements
- For-profit businessSBA 504 is for operating companies, not investors or holding companies.
- Owner-occupied useYou operate the Medical Practice — you're not just buying real estate to lease out.
- US-based and below SBA size limitsMost Medical Practice businesses qualify under SBA's small business size thresholds.
- Demonstrated ability to repayCash flow, credit, and business experience all matter — but no perfect score required.
Project requirements
- 51% owner-occupancyYour business must occupy at least 51% of the financed property.
- Eligible use of fundsReal estate, ground-up construction, major equipment, and certain refinances qualify.
- Long useful lifeEquipment financed under 504 must have a useful life over 10 years.
- 10% equity contributionCash, retained property equity, or seller carry — structured to fit your situation.
Most Medical Practice operators qualify. The fastest way to know is a 10-minute call. 1-855-504-LOAN
Built for Medical Practice financing
We're a direct lender that specializes in SBA 504 — not a broker, not a generalist.
Explore SBA 504 loans by industry
A decade of loan data, case studies, and deal structures for each of the property types we finance most.
Ready to finance your Medical Practice project?
Schedule a 15-minute call. No application fee, no obligation.