ARIZONA · NAICS NAICS 6211, 6212
Arizona medical and dental practice projects run across acquisitions, partner buy-ins, startups, and relocations across the Phoenix, Scottsdale, and Tucson metros. Studies translate patient volume, payer mix, fee schedules, and ramp into projections, and reconcile goodwill-driven going-concern appraisal triggers against the lender's coverage tests.
FEASIBILITY TRIGGER
Acquisitions routinely cross the $250,000 goodwill threshold, triggering an independent going-concern appraisal; startups and relocations are projection-based.
SBA 7(a) and 504 lenders funded 964 medical and dental practice projects across Arizona between FY2010 and FY2026, moving $573.4 million in approved capital at an average ticket of $595,000. That volume places Arizona at #5 of 38 states measured for medical and dental practice SBA activity, or 3.3% of national medical and dental practice dollars. The 7(a) program carried 89.0% of the loan count, with 504 taking the balance, and 124 approvals have hit the pipeline since FY2024.
| Disbursed loans (FY2010–FY2026) | 964 |
| Approved volume | $573.4 million |
| Average loan size | $595,000 |
| 7(a) share | 89.0% |
| Approvals since FY2024 | 124 |
| State rank by loan count | #5 of 38 |
Among the 774 seasoned loans in this segment (approvals FY2010–FY2021), 4.4% reached adverse resolution — purchased, liquidated, or charged off. The national benchmark for medical and dental practice is 3.7%, against 7.3% across all industries. That performance runs above the national benchmark for this asset class, which is a factor lenders weigh in their credit decision.
Source: SBA 7(a) and 504 FOIA loan-level data, as of March 31, 2026. Disbursed loans only. See data methodology.
A 4.4% adverse-resolution rate against the national medical and dental practice benchmark of 3.7% tells credit committees to scrutinize revenue projections and coverage assumptions closely on Arizona deals in this class. A rigorous third-party feasibility study — built on documented demand, defensible pricing, and stressed coverage — carries meaningful weight in that underwriting conversation, particularly at an average loan size of $595,000 across 964 loans.
Every Arizona medical and dental practices project we underwrite follows the same lender ready process: independent market analysis, site and technical review, and financial projections tested against SBA SOP 50 10 8 standards. Our SBA feasibility study consultants guide explains scope, timing, deliverables, and what lenders and CDCs expect in the report.
Arizona projects most often pencil under SBA 504 because the 50/40/10 structure delivers up to 90 percent financing on owner-occupied real estate at a fixed debenture rate, which is decisive in a state where Sun Belt growth has pushed land and improvement costs higher each cycle. SBA 7(a) covers acquisitions, working capital, and equipment, and from July 4, 2026 eligible borrowers can combine 7(a) and 504 for up to $10 million in total program credit.
Dental offices drew $26.1 million across 23 calendar 2025 Arizona loans and physician offices $16 million across 28 more, among the strongest practice lending in the state's book.
For a national view of this asset class, see our medical and dental practice SBA feasibility overview, and read our related analysis in the medical and dental practice lending research on our blog.
Compare neighboring markets: California, Texas.
Public SBA and CDC program records, cited as program evidence
SBA 504 through PeopleFund
Medical office real estate purchase, national program evidence
Arlington, Tarrant County, Texas
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