What's the Section 179 tax benefit for medical equipment?

Section 179 allows you to deduct the full purchase price of qualifying equipment (up to $1.22M for 2024) in the year it's placed in service, rather than depreciating over time. This can dramatically reduce your effective equipment cost.

How does SBA 504 work for dental equipment?

SBA 504 provides up to 40% of the project cost at a fixed below-market rate, your lender covers 50%, and you inject 10%. For a $500K dental operatory buildout, SBA provides $200K fixed at roughly 6%, your bank covers $250K, and you put in $50K.

Can startup medical practices qualify for equipment financing?

Yes, but terms are more conservative. Startups typically need 20-30% down, a strong personal credit profile (720+), and relevant clinical experience. SBA 7(a) is often the best path for startup practice equipment packages.

What equipment qualifies for medical/dental equipment loans?

Virtually all revenue-generating medical/dental equipment qualifies: imaging (MRI, CT, X-ray, ultrasound), dental chairs and operatory packages, surgical instruments, lasers, practice management software systems, and patient monitoring equipment.

Published: March 31, 2026·Last updated: May 16, 2026·By Ed Freeman, Capital Advisor — PeerSense

What is the best financing for healthcare — medical/dental practice at 80-100% of equipment value LTV?

Medical and dental equipment financing provides 80-100% of equipment cost at rates from 6-10% over 5-10 year terms. SBA 504 loans are ideal for major equipment purchases ($50K+) with below-market fixed rates, while conventional equipment loans offer faster approval for smaller purchases. Equipment serves as its own collateral, so additional security is rarely required. Practice acquisition financing can bundle real estate, equipment, and goodwill into a single loan package.

Published by PeerSense Capital Advisory · Written by Ed Freeman, Founder

Prime: 6.75% 10-Yr Treasury: 4.25% Est. SBA 504 Range: 6% - 10%as of Mar 19, 2026

Healthcare — Medical/Dental Practice

Medical & Dental Equipment Financing

Finance medical imaging, dental chairs, and practice equipment at 6-10% over 5-10 years. SBA 504 and conventional equipment loans for practice acquisitions and expansions.

Minimum 30-35% equity required. Dentists, physicians, veterinarians, and practice groups acquiring imaging equipment (MRI, CT, X-ray), dental operatory packages, surgical instruments, or financing full practice acquisitions.

Discuss Your Healthcare — Medical/Dental Practice Deal Call (317) 452-6990

KEY TERMS

Deal Parameters at a Glance

LTV Target

80-100% of equipment value

Est. Rate Range

6% - 10%

Term

5-10 years

Recourse

Equipment serves as collateral; personal guarantee typical

DSCR

1.20x minimum

Closing Speed

7-21 days (conventional) / 45-60 days (SBA)

Min Loan Size

$25K

Loan Products

SBA 504, Equipment Financing, Practice Acquisition Loans

FIT ASSESSMENT

When Is This the Right Fit?

Use equipment financing when adding or replacing major medical/dental equipment that will generate revenue for 5+ years. SBA 504 is ideal for purchases over $50K where you want the lowest fixed rate and longest term. Conventional equipment loans work best for sub-$50K purchases or when you need faster closing. For full practice acquisitions, package equipment financing with real estate and goodwill loans for the most efficient structure.

Want the full program overview, current rate sheet, and underwriting matrix? See the SBA Loans guide →

ADVANTAGES

Key Benefits

Equipment is its own collateral — no additional security required in most cases

100% financing available for top-credit borrowers through select lenders

SBA 504 rates lock below market for 10-20 year terms on major equipment

Section 179 tax deduction allows full equipment cost write-off in year one

Practice acquisition loans bundle equipment, real estate, and goodwill

ALTERNATIVES

Strategic Alternatives

SBA 504 Medical Office Acquisition

If you're acquiring the practice real estate along with equipment

Learn more

SBA 7(a) Refinance

If you want to refinance existing equipment debt into lower SBA rates

Learn more

Working Capital Line of Credit

If you need ongoing working capital rather than a one-time equipment purchase

Learn more

Frequently Asked Questions

Yes, select lenders offer 100% equipment financing for borrowers with 700+ credit scores and 2+ years of practice history. Most programs require 10-20% down, but strong borrower profiles can qualify for full financing.

See Related Rates by Program

PeerSense covers the full commercial capital stack. Rates and structures across our money pages — updated weekly.

CMBS Conduit

5.60–7.10%

10-yr non-recourse fixed, $5M–$500M+, fully assumable

See current rates

Bridge Loans

9.00–14.00%

12–36 mo transitional, SOFR + 470-970 bps, 65-75% LTV

See current rates

DSCR Investor

5.95–8.50%

30-yr fixed rental, qualifies on property cash flow

See current rates

Equipment Financing

5.50–12.00%

Loan, lease, SBA 504, vendor, captive — Section 179 eligible

See current rates

Hotel Financing

5.85–11.75%

CMBS + SBA 504 + bridge + PIP across all flags

See current rates

Mezzanine Debt

11.00–18.00%

Subordinate to senior, $1M–$50M, capital stack fill

See current rates

Private Credit

7.80–18.00%

Non-bank flexibility, unitranche, recap, transitional

See current rates

Invoice Factoring + ABL

0.5–3.5% / 30d

B2B receivables, trucking / staffing / construction / govt

See current rates

No-Doc CRE

7.50–11.50%

Limited-doc commercial, asset-based underwriting

See current rates

Connect with PeerSense — Direct Capital Advisory

PeerSense pre-underwrites every deal before presenting it to our institutional capital sources. With 500+ lender relationships and live market rate intelligence, we match your healthcare — medical/dental practice deal with the right capital source — right now.

Scan Your Deal (30 sec)Tell Us About Your Deal Call (317) 452-6990

No upfront retainer · Fee at closing only · Complimentary initial consultation

Published by PeerSense Capital Advisory · Written by Ed Freeman, Founder. Updated March 2026.

Disclaimer: The information on this page is provided for educational purposes only and does not constitute financial, legal, or investment advice. Rates, terms, and availability are subject to change based on market conditions, property characteristics, and borrower qualifications. The rate ranges cited reflect approximate market pricing as of March 2026 and may not reflect current conditions at the time of reading. PeerSense is a capital advisory firm, not a lender. We do not originate, fund, or service loans. All financing is provided by third-party lenders subject to their own underwriting criteria and approval processes. Borrowers should consult with qualified financial and legal professionals before making any financing decisions.