Finance Your Speech Therapy Practice Acquisition with an SBA Loan

Before approaching lenders, define the type of SLP practice you're targeting — pediatric versus adult, single versus multi-location, specific payer mix preferences, and minimum EBITDA thresholds. Confirm that your personal financial profile — credit score above 680, no federal debt delinquencies, sufficient liquidity for the down payment — meets SBA borrower standards. If you're a licensed SLP acquiring your first practice, document your clinical experience and any business management background clearly, as lenders will evaluate management competency carefully for healthcare acquisitions.

Source acquisition targets through healthcare business brokers, direct outreach to retiring SLPs, therapy-focused M&A advisors, or listing platforms. Once you've identified a practice with $1M–$5M in revenue and a payer mix that includes private insurance, school contracts, or direct-pay (not solely Medicaid), negotiate a non-binding Letter of Intent covering the purchase price, deal structure, transition terms, and any seller note or earnout provisions. The LOI signals deal intent to your SBA lender and kicks off formal underwriting.

Not all SBA lenders understand healthcare practice acquisitions. Seek out SBA Preferred Lenders or SBA PLP (Preferred Lender Program) lenders with a documented track record in outpatient therapy or physician practice acquisitions. Ask specifically whether they have underwritten SLP or multi-specialty therapy deals. Provide the lender with 3 years of the target practice's tax returns, P&L statements, a rent roll or lease summary, and a staff roster showing licensed SLP headcount. The lender will order a business valuation — typically required for SBA loans above $250,000 in goodwill — from an approved appraiser familiar with healthcare service businesses.

While the lender processes the loan, conduct thorough due diligence on the target practice. For SLP practices, priority areas include: payer mix verification and reimbursement rate analysis across all insurance contracts, clinician licensure and non-compete review, HIPAA compliance and EHR documentation quality, billing audit history and any outstanding insurance overpayment demands, and referral source durability — specifically whether school district contracts and physician referral relationships are tied to the practice entity or the selling clinician personally. Engage a healthcare-specific attorney and CPA to support this process.

Once the lender's credit committee approves the loan, you'll receive a commitment letter outlining the loan amount, interest rate, term, required equity injection, and any conditions. At this stage, finalize the purchase agreement with the seller, confirm seller note terms and standby period, and structure any earnout provisions tied to clinician retention or revenue milestones. Your attorney will prepare an asset purchase agreement (most SLP acquisitions are structured as asset purchases for tax and liability reasons) or stock purchase agreement depending on deal specifics.

At closing, the SBA loan proceeds are disbursed, the equity injection is confirmed, and ownership of the practice transfers. Post-close, execute your clinician retention strategy immediately — meet individually with each employed SLP, communicate the practice vision, and clarify compensation and caseload expectations. Notify key referral sources including pediatricians, ENT specialists, and school district contacts of the ownership transition. Begin the process of adding yourself to insurance credentialing panels, which can take 60–120 days, and ensure billing operations continue without interruption during the transition.