What do dental lenders want to see in a build-out budget and schedule?

Key facts

What should a lender-ready build-out package include?

Bank of America describes how experienced dental lenders work: they have internal processes to pay the contractor, the equipment company and other vendors who require deposits and incremental payments, and they make sure disbursements happen as planned "so you can stay on schedule." The bank also suggests applying for "a little more than you may be forecasting" to cover unforeseen overruns, because once the project starts it is crucial to finish within budget (Bank of America). Build your schedule from the dental build-out timeline, and price the budget lines with what a dental build-out costs.

What kinds of loans pay for a dental build-out?

Panacea Financial, itself a dental lender, recommends specialty lending (100% financing, working capital inclusion, graduated payment plans) and describes SBA loans as for "limited situations," citing higher rates, extensive paperwork, personal residence lien requirements and longer approval times (Panacea Financial). That's a lender talking about its competitor, so get quotes from both. ADA News, quoting the same company's president, calls SBA loans "an excellent option for those who meet the qualifications" (ADA News).

SBA 7(a) loans can fund real estate, working capital, equipment, furniture and fixtures (SBA 7(a)). SBA 504 loans fund major fixed assets such as buildings and long-life machinery with 10-, 20- and 25-year terms, but not working capital (SBA 504). If you're deciding whether to own the building, see lease vs. buy a dental office.

To turn these ranges into a number for your own project, the free build-out cost & timeline calculator (coming soon) is planned to combine square footage, operatory count and region into a budget and schedule.

How much can a startup dentist borrow?

Curve Dental reports that most dental startups qualify for $350,000 to $500,000 for a build-out and equipment package, varying significantly by market and scope (Curve Dental). Total startup projects often run higher: Bank of America has seen totals of $950,000 to $1,050,000, including the landlord allowance and about $100,000 of working capital (Bank of America). The gap between those numbers is usually filled by TI, equipment financing and your own cash. See what a dental startup costs.

Lenders look at your credit score, education and business plan (Curve Dental). Panacea advises having personal reserves of 10% or more of the anticipated loan, eliminating credit card debt and keeping credit at 750+ (Panacea Financial).

When should I get financing lined up?

Before the lease. Curve recommends getting a financing commitment letter before you begin negotiating a lease in earnest, so you don't end up "overbuilt relative to their capital" or locked into a space that doesn't fit your loan (Curve Dental). Henry Schein's startup checklist starts 9–12 months before opening (Henry Schein Dental). See the full build-out timeline.

To keep every permit, inspection and sign-off in one list with owners and dates, the free permit & inspection tracker (coming soon) is planned for this step.

How is the money paid out during construction?

In stages. Dental-specific lenders often fund in tranches tied to construction milestones; ask how a lender handles this before you commit (Curve Dental). Your landlord's TI may arrive as progress payments or as a reimbursement after completion, which affects how much bridge cash you need. A medical-office brokerage recommends negotiating milestone-based TI payments rather than one reimbursement at the end (MedWest Realty).

What loan terms matter most?

• Term length. Bank of America suggests the longest term available, for example 10 to 15 years, to keep payments low while revenue grows (Bank of America).
• Prepayment. Loans can typically be prepaid after three to five years without penalty, though options vary by lender (Bank of America).
• Working capital. Make sure the loan covers ramp-up expenses; Bank of America puts working capital at typically $100,000 (Bank of America).
• Payment deferral. Graduated or reduced early payments are offered by some specialty lenders (Panacea Financial). Ask exactly when full payments start.
• Collateral and guarantees. Ask whether your home is pledged.

What tax rules affect a 2026 build-out?

Two federal rules matter most, and your CPA should apply them to your facts:

• Section 179. For tax years beginning in 2026, you can expense up to $2,560,000 of qualifying property, reduced dollar-for-dollar once purchases exceed $4,090,000 (IRS Pub. 946).
• Bonus depreciation. For qualified property acquired and placed in service after January 19, 2025, the special depreciation allowance is 100% (IRS Topic 704). Qualified improvement property, meaning interior improvements to nonresidential buildings, can also be expensed under Section 179 (IRS Topic 704).

State tax treatment can differ from these federal rules, so ask your CPA how your state handles them.

How FloorStack helps

FloorStack is a dental build-out platform designed to give your lender a clean project package. The Build-Out Cost Calculator (coming soon at /tools/build-out-cost-calculator) is planned to turn your square footage, operatory count and market into line items a lender can review. During construction, the platform's shared project room is intended to keep milestones, invoices and documents in one place for draw requests. Start at the Build a Dental Office hub.

Free tools on the FloorStack dental build-out platform for this step: Permit & inspection tracker (free tool, coming soon).

Free tools for this step

• Build-out cost & timeline calculator (free tool, coming soon): estimate budget and schedule from your square footage, operatory count and region.
• Permit & inspection tracker (free tool, coming soon): track every permit, inspection and sign-off through the certificate of occupancy.