CALIFORNIA · NAICS NAICS 6211, 6212
California medical and dental practice deals routinely cross the $250,000 goodwill threshold, which brings the independent going-concern appraisal into scope and raises the bar on the supporting feasibility analysis. Studies tie procedure mix and payer schedules to service-area demographics, then test post-acquisition coverage under realistic productivity assumptions.
FEASIBILITY TRIGGER
Practice acquisitions routinely cross the $250,000 goodwill threshold that triggers an independent going-concern appraisal, and startups and relocations are projection-based.
California generated 5,263 SBA-disbursed medical and dental practice loans between FY2010 and FY2026, worth $3.89 billion in approved 7(a) and 504 financing at an average of $739,000 per deal. Ranked #1 of 38 states for medical and dental practice SBA volume, the state captures 22.5% of national medical and dental practice dollars. 73.5% of the loans ran through 7(a) with 504 covering the remainder; 545 approvals have posted since FY2024.
| Disbursed loans (FY2010–FY2026) | 5,263 |
| Approved volume | $3.89 billion |
| Average loan size | $739,000 |
| 7(a) share | 73.5% |
| Approvals since FY2024 | 545 |
| State rank by loan count | #1 of 38 |
Among the 4,297 seasoned loans in this segment (approvals FY2010–FY2021), 2.0% 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 below the national benchmark for this asset class, a credit-positive signal for lenders.
Source: SBA 7(a) and 504 FOIA loan-level data, as of March 31, 2026. Disbursed loans only. See data methodology.
A 2.0% adverse-resolution rate below the national medical and dental practice benchmark of 3.7% supports the credit story for well-underwritten California projects in this class. Across 5,263 SBA loans averaging $739,000, that track record does not eliminate the need for a third-party feasibility study, but it means a rigorous study reinforces rather than defends the projections.
Every California 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.
California 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 where California land and improvement costs run high. 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.
California practice values, particularly in coastal metros, push most acquisitions through the goodwill threshold that triggers the going-concern appraisal and supporting study.
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.
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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