MINNESOTA · NAICS NAICS 6211, 6212
Minnesota medical and dental acquisitions routinely cross the $250,000 goodwill threshold that triggers an independent going-concern appraisal. Dental offices drew $10.5 million across just nine calendar 2025 loans, among the largest per-deal averages in the state, with Rochester's Mayo cluster anchoring the deepest healthcare economy in the Upper Midwest.
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 429 medical and dental practice projects across Minnesota between FY2010 and FY2026, moving $223.8 million in approved capital at an average ticket of $522,000. That volume places Minnesota at #18 of 38 states measured for medical and dental practice SBA activity, or 1.3% of national medical and dental practice dollars. The 7(a) program carried 72.5% of the loan count, with 504 taking the balance, and 26 approvals have hit the pipeline since FY2024.
| Disbursed loans (FY2010–FY2026) | 429 |
| Approved volume | $223.8 million |
| Average loan size | $522,000 |
| 7(a) share | 72.5% |
| Approvals since FY2024 | 26 |
| State rank by loan count | #18 of 38 |
Among the 360 seasoned loans in this segment (approvals FY2010–FY2021), 1.1% 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 1.1% adverse-resolution rate below the national medical and dental practice benchmark of 3.7% supports the credit story for well-underwritten Minnesota projects in this class. Across 429 SBA loans averaging $522,000, 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 Minnesota 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.
Minnesota projects 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 calendar 2025 average rate ran 0.63 points below the national figure. 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 $10.5 million across just nine calendar 2025 Minnesota loans, among the largest per-deal averages in the state, with Rochester's Mayo cluster anchoring the deepest healthcare economy in the Upper Midwest.
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
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