Dental Office Expansion Loan | 100% SBA Financing for Construction and Relocation

The practice needed to relocate its primary office from an existing professional plaza to a new Class A medical office location positioned for better patient accessibility, higher visibility, and proximity to a major interstate interchange. The relocation required a full dental office buildout: clinical operatory construction, periodontal treatment room configuration, dental implant surgical suite preparation, sterilization and instrument processing infrastructure, patient reception and consultation areas, and the specialized mechanical, electrical, and plumbing systems that a periodontal surgical practice requires. The project also needed to consolidate an existing equipment loan that was being carried separately, and provide working capital to sustain operations through the transition period when the practice would be managing construction, moving between locations, and maintaining patient continuity across two offices.

The practitioner's existing bank, a large national institution where the practice had maintained its primary banking relationship, had been working the transaction for months. The bank's structure required a 20% equity injection from the borrower. On a dental office construction and relocation project of this scale, that equity requirement would have forced the practitioner to extract significant personal capital at a time when maintaining liquidity through the construction and relocation period was essential to practice continuity. The practice's financial performance did not justify the equity requirement: five consecutive years of revenue ranging from $1.2 million to more than $1.4 million, NOI available for debt service ranging from approximately $475,000 to more than $714,000, and debt service coverage ratios between 4.41x and 6.62x. The cash flow supported the project. The bank's structure did not reflect that.

The months of delays with the existing bank created urgency. The lease on the new office space, construction timelines, and patient scheduling all depended on the financing closing within a defined window. The practitioner could not absorb another extended underwriting process. Cornovus Capital needed to structure, underwrite, place, and close the transaction quickly enough to preserve the project timeline the borrower had already committed to.

• Full dental office buildout required: clinical operatories, periodontal treatment rooms, implant surgical preparation, sterilization systems, reception, and specialized MEP infrastructure
• Existing bank required 20% equity injection despite five consecutive years of DSCR between 4.41x and 6.62x
• Months of delays with the prior lender had compressed the available timeline for the relocation and construction project
• Equipment debt carried separately needed consolidation into a single long-term facility
• Working capital required to sustain multi-location operations through the construction and relocation transition
• Practitioner's existing office, owned by the borrower, needed to be preserved as additional collateral and future lease income

Cornovus Capital structured the dental office expansion loan as a single SBA 7(a) facility covering every component of the project: the full dental office construction buildout and tenant improvements, the payoff of the existing equipment obligation, and working capital for the relocation transition period. The facility carried a 10-year fully amortizing term at WSJ Prime plus 2.00% with quarterly rate adjustment. No equity injection was required. The entire project was financed at 100%, preserving the practitioner's personal liquidity during the most operationally complex phase of the relocation.

The credit package presented the practice's financial performance with the specificity that healthcare practice lending requires. Five consecutive years of auditable revenue, detailed officer compensation and addback analysis, existing lease cost offsets, equipment recast projections, and the income potential from leasing the practitioner's owned office space after relocation were all documented and modeled. The DSCR analysis demonstrated coverage ranging from 4.41x to 6.62x under the proposed facility's debt service, with stress testing at 200 basis points above the base rate still producing coverage well above 4.0x. The practitioner's credentials, including the practitioner's D.M.D., residency training, faculty appointment, and professional organization memberships, established the professional profile that supports long-term practice stability.

The new office location was positioned within a Class A medical and professional plaza near a major interstate interchange, in a commercial corridor that had attracted more than $3.5 billion in cumulative investment over the prior two decades. The relocation improved patient accessibility, increased professional visibility, and positioned the practice within a concentration of complementary healthcare providers. Cornovus Capital coordinated the SBA authorization, third-party diligence, front-end construction review, lease analysis, and lender closing conditions within the compressed timeline, delivering committed terms and closing the transaction in under 45 days from the date of initial engagement.

• Structured 100% SBA 7(a) financing with no equity injection, covering buildout, equipment consolidation, and working capital in a single facility
• Presented five consecutive years of DSCR between 4.41x and 6.62x, with stress testing above 4.0x at 200 basis points over base rate
• Documented the practitioner's clinical credentials, residency training, faculty appointment, and professional memberships as credit support
• Coordinated front-end construction review, lease analysis, SBA authorization, and third-party diligence within a compressed timeline
• Closed the transaction in under 45 days from initial engagement, preserving the borrower's construction and relocation schedule
• Preserved the practitioner's owned office as additional collateral with future NNN lease income potential

The dental office expansion loan closed in under 45 days from the date Cornovus Capital was engaged, replacing months of unresolved delays with a single SBA 7(a) facility that covered the entire project at 100% financing. The dental office buildout and tenant improvements were fully funded. The existing equipment obligation was retired at closing and consolidated into the new facility. Working capital was provided to support the practice through the construction and relocation transition without requiring the practitioner to inject personal equity or draw down operating reserves.

The transaction demonstrated a financing execution that is directly relevant to dental and healthcare practitioners navigating practice construction, relocation, or expansion. A 20% equity requirement from a large bank had threatened to force a highly profitable, well-established periodontal practice to either deplete personal liquidity or abandon a strategic relocation. The SBA 7(a) structure eliminated the equity barrier entirely, consolidated existing debt, funded the full buildout, and provided working capital, all within a timeline that preserved the practitioner's construction schedule and lease commitments. The practice relocated to a Class A medical office environment with improved accessibility, higher visibility, and positioning within a growing healthcare corridor. The practitioner's owned office in the prior location was retained as additional collateral with future lease income potential, creating a secondary revenue stream from an asset the practice had already paid down.

• 100% SBA 7(a) financing closed with no equity injection required from the practitioner
• Full dental office buildout and tenant improvements funded for periodontal surgical practice, including clinical operatories, treatment rooms, and specialized infrastructure
• Existing equipment debt consolidated into the SBA facility at closing
• Working capital provided to support multi-location operations during the construction and relocation transition
• Transaction closed in under 45 days from engagement, after months of delays with the borrower's prior bank
• Practice relocated to a Class A medical and professional plaza with improved patient accessibility and professional visibility
• 10-year fully amortizing term at WSJ Prime + 2.00% producing debt service coverage well above 4.0x on trailing financials
• Prior office retained by the practitioner as additional collateral with future NNN lease income potential

Additional financing outcomes are available in our Transaction Highlights archive.