What medical specialties qualify for SBA 504?

All licensed healthcare practitioners qualify: physicians (all specialties), dentists, optometrists, veterinarians, chiropractors, physical therapists, and medical group practices. The key requirement is owner-occupancy of at least 51% of the building.

Can I lease out part of the building I buy with SBA 504?

Yes, up to 49% of the space can be leased to other tenants. Many physicians purchase larger buildings and lease excess space to complementary medical practices, pharmacies, or labs, creating additional income while meeting the 51% occupancy requirement.

How does SBA 504 compare to a conventional medical office loan?

SBA 504 offers higher leverage (90% vs 65-80%), longer fixed terms (25 years vs 5-10), and typically lower rates. The tradeoff is personal guarantee, more documentation, and 60-90 day closing timelines. For owner-occupants, SBA 504 is almost always the superior option.

✦Prime Rate:6.75%✦Fed Funds:3.64%✦5-Yr Treasury:3.88%↓✦10-Yr Treasury:4.25%↓✦30-Yr Treasury:4.83%↓✦30-Yr Mortgage:6.22%·Updated Mar 19, 2026✦Prime Rate:6.75%✦Fed Funds:3.64%✦5-Yr Treasury:3.88%↓✦10-Yr Treasury:4.25%↓✦30-Yr Treasury:4.83%↓✦30-Yr Mortgage:6.22%·Updated Mar 19, 2026

Full Rate WatchRates

What is the best financing for medical office at Up to 90% LTV?

Owner-occupant healthcare practitioners qualify for SBA 504 medical office acquisition financing at up to 90% LTV with 25-year fixed rates typically in the 6.5%–7.5% range. Physicians, dentists, veterinarians, and medical groups can purchase their practice space with as little as 10% equity, building wealth instead of paying triple-net rent to a landlord.

Written by Ed Freeman, Capital Advisory — PeerSense

Prime: 6.75% 10-Yr Treasury: 4.25% Est. SBA 504 Range: 6.5% – 7.5% (SBA 504 fixed)as of Mar 19, 2026

Medical Office

SBA 504 Medical Office Acquisition

Healthcare practitioners: acquire your own medical office with SBA 504 financing. Up to 90% LTV, 25-year fixed rates typically 6.5%–7.5% (SBA 504), and only 10% borrower equity required.

Minimum 30-35% equity required. Physicians, dentists, veterinarians, physical therapists, and medical group practices purchasing office space they will occupy.

Discuss Your Medical Office Deal Call (317) 452-6990

KEY TERMS

Deal Parameters at a Glance

LTV Target

Up to 90%

Est. Rate Range

6.5% – 7.5% (SBA 504 fixed)

Term

25 years fixed

Recourse

Full recourse (personal guarantee)

DSCR

1.15x minimum

Closing Speed

60-90 days

Min Loan Size

$500K

Loan Products

SBA 504

FIT ASSESSMENT

When Is This the Right Fit?

SBA 504 is ideal when you are a healthcare practitioner purchasing the building where you operate your practice. You must occupy at least 51% of the space (you can lease out the remainder). This works best for established practices with 2+ years of stable revenue looking to transition from leasing to ownership. The 25-year fixed rate and 90% LTV combination is unavailable through any other financing program for medical office. If you are an investor purchasing medical office to lease to third-party tenants, SBA 504 does not apply — consider CMBS or conventional financing instead.

ADVANTAGES

Key Benefits

Up to 90% LTV — only 10% equity for healthcare practitioners

25-year fixed rate provides payment certainty for the life of the loan

Build equity in your practice location instead of paying rent

Include specialized build-out costs (imaging, surgical suites) in the loan

Below-market rates compared to conventional medical office financing

ALTERNATIVES

Strategic Alternatives

Medical Office CMBS Refinance

If you are an investor (not owner-occupant) seeking non-recourse terms

Learn more

SBA 7(a) to 504 Refinance

If you already own medical office space with variable-rate SBA 7(a) debt

Learn more

Equipment Financing for Construction

If you need to finance medical equipment alongside the real estate

Learn more

Frequently Asked Questions

Yes. SBA 504 can finance both the real estate and long-life improvements including imaging suites, dental operatories, surgical centers, and specialized HVAC systems. This consolidates your real estate and build-out into a single 25-year fixed-rate loan.

Connect with Ed Freeman — 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 medical office deal with the right capital source — right now.

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

Written by Ed Freeman, Capital Advisory — PeerSense. 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.