---
title: "What Is Practice loan? Dental Practice Glossary"
description: "A practice loan is a business loan used to buy, start or expand a dental practice, repaid from practice earnings and often secured by assets."
url: https://joncopeland.multisites.ai/glossary/practice-loan
publisher: Copeland Consulting Services
email: drcopeland@joncopelanddds.com
contact: https://joncopeland.multisites.ai/contact
---

Finance and valuation

# Practice loan

A practice loan is a business loan used to buy, start or expand a dental practice, repaid from practice earnings and often secured by assets.

The SBA describes its 7(a) program as its primary business loan program, providing a loan guarantee to lenders so they can help small businesses with special requirements. The ADA's startup guidance says many banks set a loan limit for dentistry startups and almost all require the borrower to provide a capital investment. The ADA also advises running basic projections as a reality check before talking with lenders. Lenders usually ask for a [business plan](https://joncopeland.multisites.ai/glossary/business-plan) and [practice financial statements](https://joncopeland.multisites.ai/glossary/practice-financial-statements), and for a purchase they may rely on a [practice valuation](https://joncopeland.multisites.ai/glossary/practice-valuation). Loan terms, rates and personal guarantees should be reviewed with an attorney and a CPA.

[Next stepPractice consulting with Dr. Copeland](https://joncopeland.multisites.ai/contact?topic=consulting)

## Related terms

-   [Business plan](https://joncopeland.multisites.ai/glossary/business-plan)
-   [Practice valuation](https://joncopeland.multisites.ai/glossary/practice-valuation)
-   [Working capital](https://joncopeland.multisites.ai/glossary/working-capital)
-   [Dental school debt](https://joncopeland.multisites.ai/glossary/dental-school-debt)

## Sources

1.  [SBA, 7(a) loans](https://www.sba.gov/funding-programs/loans/7a-loans)
2.  [ADA, Business side of dentistry: 7 steps for success in starting your own practice](https://www.ada.org/resources/careers/7-steps-for-success-in-starting-your-own-practice)

## Talk with Dr. Copeland

[Contact Dr. Copeland](https://joncopeland.multisites.ai/contact)[Email](mailto:drcopeland@joncopelanddds.com)