What are the SBA 7(a) loan requirements for chiropractors in 2026?
An SBA 7(a) loan can pay for buying a chiropractic practice, buying out a partner, or opening and building out a second clinic. Here’s what SBA looks at on a chiropractic file this year, and where Five West does the heavy lifting.
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What does SBA require of a chiropractic practice?
The general rules live in our 2026 SBA 7(a) requirements guide. The short version for a DC:
- U.S. ownership. Since March 1, 2026, every owner must be a U.S. citizen or national living here. A green card holder who owns part of the practice, or did in the past six months, has to be completely out before SBA issues the loan number. Our application asks this first.
- Licensed ownership. A licensed business qualifies only if its ownership meets state requirements, which the lender documents. State licensing rules apply; an attorney can confirm, and a CPA can help structure a buy-in.
- Cash flow, guarantees, paperwork. Cash flow has to cover all debt payments 1.10 to 1.25 times over, anyone owning 20% or more personally guarantees the whole loan, and SBA Form 1919 and IRS tax transcripts are standard.
| Requirement | What SBA requires | What it means for chiropractors |
|---|---|---|
| Size | Receipts under the NAICS 621310 standard, or SBA’s alternative test, affiliates included. | Count every clinic the owners control. |
| Ownership | All owners U.S. citizens or nationals. A licensed business’s ownership must meet state rules. | Settle any green card holder’s exit and your state’s rules before signing. |
| Cash flow | Coverage of 1.10 to 1.25, by loan size and deal type. | A purchase leans on the seller’s returns. |
| Down payment | At least 10% to buy a business you don’t own yet. A standby seller note can supply up to half. | Unborrowed cash, a gift, or a personal loan repaid from outside income, with the source documented. |
| Life insurance | Covers the collateral shortfall when a loan over $350,000 isn’t fully secured and the business relies on one owner. | Plan for it in a solo-doctor office. |
| Build-out | Leasehold improvements to 10 years, plus up to a year to finish. Larger build-outs call for a lease, renewals included, as long as the loan. | Ask for renewal options before you sign the lease. |
Sources: SOP 50 10 8.1 and 13 CFR 121.201.
Is your chiropractic practice small enough for SBA?
Offices of Chiropractors, NAICS 621310, carries a size standard of $9.0 million in average annual receipts.
Above that? SBA’s alternative test caps tangible net worth at $20 million and average net income after federal income taxes, over the two latest full fiscal years, at $6.5 million. Either test is enough, and affiliates count in both, so another clinic the owners control may be included. Our SBA application asks about other businesses up front.
SBA has proposed raising the 621310 figure to $10.0 million, but no change is final, so $9.0 million applies today.
Can you use an SBA loan to buy a chiropractic practice?
Yes. Our chiropractic equipment financing page sends practice buyers to SBA because one 7(a) loan can carry the price, the office’s equipment and working capital for the handoff. For a DC buying from outside:
- Deal type. SBA’s default is an initial acquisition: a new majority or largest owner from outside the practice, or a buyer with under 24 months there. The lender documents the type.
- Equity. At least 10% of the total project cost, with no reduction for an outside buyer. A seller note on full standby, paid nothing while the SBA loan is outstanding, can make up to half of it.
- Coverage of at least 1.25.
- Goodwill. Goodwill, patient and client lists and a non-compete can be financed if SBA’s due-diligence rules are met, over 10 years at most. Only a real estate share can run to 25.
- Valuation. Above a $350,000 price, owner-occupied real estate excluded, an independent valuation is required.
- The seller. After a full sale, the selling doctor can stay only as a consultant, 24 months total at most, and seller earnouts are off the table.
Expect to send your returns, financials and debt schedule, plus three years of the seller’s financials. We hand you that list up front.
How do associate buy-ins and partner buyouts work?
In SBA’s terms, an owner buyout is a change among the people who already own or work in the practice. The 10% starting equity can be cut or waived if the practice keeps enough cash and working capital afterward and showed no negative net worth at its last fiscal year-end. Coverage stays at 1.25.
Associates should count their months. With under 24 months on staff, an associate can buy less than half and can’t become the biggest owner. Past those limits, SBA applies its initial acquisition standards, and the equity can’t be reduced.
A selling doctor in a partial buyout can keep a stake and keep working, though one left under 20% still guarantees the full loan for at least two years. If nobody holds 20%, at least one owner still guarantees in full. If the structure needs fixing before we package the file, we’ll tell you straight.
Can SBA pay for a second clinic or a build-out?
Yes. Build-outs are on our list of common SBA uses, and a recent 7(a) loan we funded was a $740,000 second clinic build-out for a chiropractic practice. In leased space:
- Improvements get up to 10 years, plus as much as 12 months to complete.
- Lease length. Once the build-out hits $500,000 or 30% of the loan, whichever is lower, your lease plus renewals you control should last as long as the loan, and must if the lender can’t get a lease assignment or landlord’s waiver.
Representative recent transaction. Amounts and structures vary by deal and approval.
Buying the building? It has to be owner-occupied (51% of an existing building, 60% of new construction), and 7(a) can run real estate to 25 years. SBA 504 starts at 10% down, rising to 15% for a new business (two years or less; a purchase by new, unproven owners can count) or a special-purpose property, and 20% if both apply. SBA’s special-purpose list names other health or medical facilities; whether your clinic building counts is the 504 side’s call. We run both against your deal and show you the numbers.
Buying another practice? Chiropractic offices share NAICS group 6213 with optometrists, physical and occupational therapists, podiatrists and other health practitioners. A practice with two full fiscal years under its current owners that buys all of one of those businesses can count as a business expansion: 1.15 coverage, and equity the lender can trim under SBA’s conditions.
What if you need under $150,000 or need it fast?
Then start with equipment financing. Our 7(a) loans begin at $150,000, and below that, or when the money can’t wait, an equipment program or leaseback usually fits better. From our chiropractic page:
- Equipment finance for tables, decompression, Class IV lasers, X-ray, EHR software and build-out, over 24 to 72 months.
- Application-only files, with no returns or statements, to about $75,000 for most established practices and $50,000 under two years, approved in as little as 30 minutes when clean and funded 24 to 48 hours after signing on standard deals.
- An equipment leaseback on gear you own, for practices two years or older, funded 2 to 5 business days after signing.
Taking only the equipment from a retiring DC’s office is an equipment purchase, with a lien search and payment straight to the seller; see used chiropractic equipment and our chiropractic equipment requirements guide.
Why do chiropractors pick Five West for an SBA 7(a) loan?
One application covers the SBA loan and the equipment finance, lease or leaseback around it. With Five West’s SBA loans, you get:
- Fast replies. Applying starts with a soft credit inquiry, and most applications get a first answer within 1 to 2 business hours. Not SBA-ready? We’ll tell you and set up what works now, with SBA as a later refinance.
- One checklist at the start.
- A packaged file, matched to the SBA program most likely to approve it.
- One contact. A dedicated funding professional runs your deal from application to funding, and the online status page shows where it stands with your application number, without touching your credit.
Our team averages about 10 years of experience, and our qualification guidelines show what makes an SBA file stronger. I’d talk to us before you sign a lease for a second location, while renewal options are still open.
Frequently asked questions
Can an associate chiropractor buy into a practice with an SBA loan?
Yes. SBA treats a change among existing owners or employees as an owner buyout, where the down payment can be reduced under SBA’s conditions. An associate with less than 24 months at the practice can buy less than half and can’t become the largest owner. A bigger stake falls under the initial acquisition standards, with no reduction.
Does an SBA loan cover goodwill when you buy a chiropractic practice?
Yes. A 7(a) loan for a change of ownership can include goodwill, patient and client lists and a non-compete agreement, as long as SBA’s due-diligence rules are met. Goodwill is limited to a 10-year term, and a purchase price over $350,000, not counting owner-occupied real estate, needs an independent business valuation.
Can the selling chiropractor stay on after the sale?
It depends on how much they sell. After a full sale to an outside buyer, the seller can stay only as a consultant, for up to 24 months in total, and seller earnouts aren’t allowed. In a partial buyout, the selling owner can stay on, and one who keeps less than 20% still guarantees the full loan for at least two years.
What size standard applies to chiropractors for an SBA loan?
Offices of Chiropractors, NAICS 621310, has a size standard of $9.0 million in average annual receipts. A larger practice can still qualify under SBA’s alternative net worth and net income test, and other practices the owners control can count toward size under both.
What credit score do chiropractors need for an SBA 7(a) loan?
SBA doesn’t set a minimum credit score, but the lenders that underwrite SBA loans do, and that’s usually 650 or higher. The lender also reviews the personal credit of each owner and guarantor, and SBA files are stronger with reasonable credit and steady cash flow. Applying with Five West starts with a soft credit inquiry.
Can a chiropractor use an SBA loan to buy a physical therapy practice?
Possibly, as a business expansion. Chiropractors and physical therapists share NAICS industry group 6213. If your practice has had two full fiscal years under its current owners and buys all of the other business, SBA’s 1.15 coverage minimum can apply, and the lender may reduce the down payment under SBA’s conditions. State licensing rules on who can own each practice still apply.
Do solo chiropractors need life insurance for an SBA loan?
Sometimes. If a loan over $350,000 isn’t fully secured and the practice depends on one owner’s active work, SBA requires life insurance on that owner for the collateral shortfall. We handle conditions like this as part of managing the file through to funding.
Bring us the practice deal.
One short application, with a soft credit inquiry, tells us whether your purchase, buyout or second clinic belongs on SBA 7(a), 504 or an equipment program.
This article is general information about SBA 7(a) loan requirements for chiropractic practices, not legal, tax or accounting advice or a commitment to finance. SBA changes its rules through new SOP versions and notices, so confirm the current requirements on SBA.gov before relying on them. All financing is subject to credit approval and underwriting.