How do I finance acquiring another surgery center practice?

Yes—if you’ve operated 24 months, have a DSCR ≥ 1.25x, and a good credit score, you can get an SBA 7(a) or private loan to buy another practice. See your rate in 2 minutes—no credit‑score hit.

The specifics

Lenders treat a practice acquisition as an extension of your existing ASC. According to Crestmont Capital, you need at least 24 months of operating history, a DSCR of 1.25x, and a credit score of 740+ (good credit) to qualify for the most favorable SBA 7(a) terms. The loan amount can range from $250 k to $5 m, depending on the target’s gross annual revenue and the facility’s size (Crestmont).

SBA 7(a) terms caps at 84 months; the typical down‑payment is 15–20 % of the purchase price. APRs align with the 2026 SBA range: 8–10 % for good credit and 10–13 % for fair credit (620–679) — see Live Oak Bank for real‑world figures. For equipment that makes up 70 % or more of the purchase, most lenders offer a separate lease or loan on 60–84 month terms with a 9–12 % APR (CLScre).

Underwriting time generally falls between 30–45 days for both acquisition and equipment components (CLScre). All SBA loans use a soft‑pull credit check—there’s no impact on your score when you compare rates.

When you plan the purchase, use our affordability calculator or affordability tools to estimate the capital needed and how it fits into your existing cash flow.

Qualification & edge cases

• If your score is 620–679, fair‑credit rates will apply; you can mitigate by adding a co‑signer or increasing the down‑payment to 25–35 %.
• For new owners with only 12–18 months of operations, Lenders often accept a personal guarantee and a larger equity stake, though processing may take slightly longer.
• A DSCR below 1.25x isn't an absolute barrier; lenders may approve if projected cash flow improves the ratio or if you carry a sizable cash reserve of 3–6 months (as recommended by SBA guidelines).
• If the target practice’s equipment value exceeds 70 % of the purchase, financing that portion separately will preserve working capital for growth.

Background & how it works

Acquisitions typically involve two loan components: a facility acquisition loan (often an SBA 7(a) or private lender) and an equipment loan or lease. The SBA loan is favored because the ASC’s revenue streams—moderate‑volume, high‑margin outpatient procedures—allow lenders to meet debt‑service coverage expectations. When the buyer’s credit aligns with SBA thresholds, you receive lower rates and more flexible terms. Private lenders step in when credit is lower or speed is essential. The 2026 commercial‑real‑estate outlook for outpatient surgery centers remains strong, with a 70 %+ occupancy threshold unlocking the best rates (CLScre).

Bottom line

If your ASC has 24 months of history, a DSCR of 1.25x, and a solid credit score, you can acquire another practice with an SBA 7(a) or private loan. With minimal work, you can see qualifying rates in just minutes.

Disclosures

This content is for educational purposes only and is not financial advice. surgerycenterfinancing.com may receive compensation from partner lenders, which may influence which products are featured. Rates, terms, and availability vary by lender and applicant qualifications.

Sources

• Crestmont Capital
• Live Oak Bank
• CLSCRE 2026 Lender Guide
• McDonald Hopkins – ASC Real Estate and M&A Roadmap
• Imaging Center Financing – Chandler, AZ