MICHIGAN · NAICS NAICS 6211, 6212
Michigan medical and dental practice projects run across acquisitions, partner buy-ins, startups, and relocations, anchored by the Ann Arbor medical base and metro Detroit and Grand Rapids practices. 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 874 medical and dental practice projects across Michigan between FY2010 and FY2026, moving $431.8 million in approved capital at an average ticket of $494,000. That volume places Michigan at #7 of 38 states measured for medical and dental practice SBA activity, or 2.5% of national medical and dental practice dollars. The 7(a) program carried 85.7% of the loan count, with 504 taking the balance, and 96 approvals have hit the pipeline since FY2024.
| Disbursed loans (FY2010–FY2026) | 874 |
| Approved volume | $431.8 million |
| Average loan size | $494,000 |
| 7(a) share | 85.7% |
| Approvals since FY2024 | 96 |
| State rank by loan count | #7 of 38 |
Among the 723 seasoned loans in this segment (approvals FY2010–FY2021), 2.9% 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 2.9% adverse-resolution rate below the national medical and dental practice benchmark of 3.7% supports the credit story for well-underwritten Michigan projects in this class. Across 874 SBA loans averaging $494,000, 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 Michigan 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.
Michigan 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, and the state's Collateral Support Program can layer up to 40 percent collateral coverage onto qualifying deals. 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 $23 million across 24 calendar 2025 Michigan loans and physician offices $15.4 million across 28 more, with Ann Arbor's medical base anchoring practice demand.
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: Massachusetts, Minnesota, Texas.
Public SBA and CDC program records, cited as program evidence
SBA 504 through Ohio Statewide Development Corporation with PNC Bank
Dental practice real estate, 2025, national program evidence
Westerville, Franklin County, Ohio
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