Professional Practice Loans in Minnesota
Practice acquisition, partner buy-ins, equipment and real estate for law firms, CPA, dental, veterinary, medical, insurance and title professionals.
Buying into a partnership. Purchasing the practice outright. Building out a new location, replacing the equipment, or funding payroll through a slow quarter. Security Bank & Trust Co. finances Minnesota professional practices, and the lender who reviews your file works here.
Why Minnesota professional practices bank with Security
A professional practice is a strange thing to underwrite. There is rarely much hard collateral. The real value sits in a client list, a referral pattern, a lease in the right building, and a person whose name is on the door. A lender who only knows how to look at equipment and real estate will either decline the file or price it as if it were a startup.
We have been financing Minnesota practices long enough to read the other things. What the retiring partner's book actually looks like. Whether the transition plan keeps the clients. Whether the buildout you are quoting is the one the landlord will actually approve. Those judgments do not come out of a scoring model, and they are the reason the lender comes to your office instead of asking you to upload documents into a portal.
We serve professionals across McLeod County, Carver County, the Twin Cities metro, and the communities around our branches in between. If you want to see where we are, our locations and hours are here.
Not sure this is the right page? For the full range of what we lend on, start at Minnesota business loans and lines of credit. If you are financing a building, start at commercial real estate loans. If you are buying a business rather than a practice, start at business acquisition financing. If you just need equipment, start at business equipment financing.
What we finance for professional practices
Practice acquisition and partner buy-in
- Buying into a partnership as a new owner
- Purchasing a retiring owner's interest
- Buying an entire practice or clinic
- Acquiring a book of business
- SBA 7(a) structures where the guarantee makes the deal work
The building your practice works in
- Owner-occupied office, clinic, and suite purchases
- Refinancing a building you already own
- Ground-up construction and major renovation
- SBA 504 for long-term owner-occupied real estate
Equipment, technology, and tenant improvements
- Operatories, chairs, imaging, and diagnostic equipment
- Practice management and accounting software
- Leasehold improvements and office buildout
- Furniture, fixtures, and IT infrastructure
Working capital and lines of credit
- Revolving lines for seasonal and receivable swings
- Term loans for a defined project
- Debt consolidation across earlier practice borrowings
- Treasury services that shorten the collection cycle
Practice acquisition loans and partner buy-ins
This is the loan we write most often for professionals, and it is the one that most often gets structured badly somewhere else. A practice purchase is not a commercial real estate deal with a different label on it. The thing being bought is mostly goodwill, and goodwill behaves differently than a building does.
Buying into a practice as a partner
A buy-in is usually the first large loan a professional takes on. You are purchasing a share of an entity you already work inside, from partners who know exactly what it is worth, using a valuation you had limited influence over. Two things determine whether the loan works: whether the distributions your ownership share produces will carry the payment, and whether the partnership agreement lets us take the collateral we would need if things went sideways.
Bring us the partnership agreement and the valuation early, before you have signed anything. We would rather flag a structural problem while it can still be negotiated than after you are committed.
Buying a practice outright
A full purchase asks a harder question: will the clients stay after the seller leaves? The answer usually depends on how long the seller agrees to stay on and how the transition is handled with the client base. A short handoff on a practice built entirely around one person's relationships is the single most common reason a practice acquisition underperforms its projections.
We look at the seller's tax returns and practice reports, your own experience in the specialty, the transition period, and any non-compete that protects what you are paying for. The due diligence checklist for small business acquisitions covers most of what we will ask you for, and it is worth reading before you make an offer.
Where SBA 7(a) fits
Many practice acquisitions are financed with an SBA 7(a) loan. The government guarantee lets a lender extend a longer term and work with less collateral than a conventional loan would require, which matters a great deal when the asset being purchased is goodwill. Longer amortization also means the payment is sized against what the practice actually produces rather than against what the buyer can post as security.
Your lender builds the file and presents the credit here, and coordinates with the Certified Development Company when a deal is a 504. Details are on the SBA loans in Minnesota page.
- Call before you signA conversation at letter-of-intent stage is worth more than one after the purchase agreement is executed. Structure is easier to fix early.
- Send the practice financialsThree years of the practice's tax returns and financial statements, plus your personal financial statement and returns.
- We review and come back with a structureConventional or SBA, term, collateral, and what the transition period needs to look like for the numbers to hold.
- Underwriting and approvalDecided here, by people who have met you. You will know who is reviewing your file.
- Close and set up the accountsOperating account, line of credit, merchant services, and any trust or escrow accounts your profession requires.
Considering a buy-in or a practice purchase? The earliest conversation is the most useful one.
Talk to a lenderLaw firm loans and IOLTA accounts
Firms borrow for reasons that look nothing like a retail business. A partner buyout when a name partner retires. Case cost advances on a contingency docket that will not settle for two years. A move to better space. A merger with a smaller firm across town. Each of those has a different right answer, and a revolving line is not always it.
We offer term loans, revolving lines of credit, owner-occupied real estate financing, and equipment loans to Minnesota firms. We also support the Interest on Lawyers' Trust Accounts program, known as IOLTA, which funds civil legal services for Minnesotans who could not otherwise afford a lawyer. If you are opening or moving a client trust account, we handle the setup and the reporting that goes with it.
Firms with meaningful trust balances and a heavy monthly deposit volume should also look at the treasury management guide. Reconciliation discipline on a client trust account is not optional, and the right account structure makes it far less painful.
CPA and accounting practice loans
Accounting practices have a cash flow shape almost nobody else has. Revenue concentrates hard into a few months, expenses do not, and the gap between the two has to be bridged every year. A line of credit sized to the busy season is the wrong line. It should be sized to the quiet one.
We finance CPA practice acquisitions and book-of-business purchases, partner buy-ins, software and technology upgrades, office buildouts, and seasonal working capital. Buying a retiring practitioner's client list is one of the most common transactions in the profession right now, and it is a transaction we understand: the value is the client relationships, the risk is whether they transfer, and the structure has to reflect both.
If your own clients ask when a growing business should bring on professional help, our post on when to hire an accountant is a useful thing to hand them.
Dental practice loans
Dentistry is capital-hungry in a way most professions are not. An operatory costs real money to build. Imaging, chairs, sterilization, and practice management systems all replace on a cycle. And the ownership transition in Minnesota dentistry is being reshaped by corporate groups buying up independent practices, which means a dentist who wants to own their own chair is often bidding against a buyer with institutional capital behind it.
We finance dental practice acquisitions and buy-ins, new operatory buildouts, equipment and technology replacement, owner-occupied clinic real estate, and working capital. If you are an associate looking to buy in, or an owner planning a sale to a younger dentist rather than to a group, that is a conversation worth having with us early. Those transitions take longer to structure than the buyer usually expects.
Veterinary practice loans
Veterinary medicine is going through the same consolidation dentistry is, and faster. Independent clinics across Minnesota are being approached by corporate groups, and a lot of veterinarians would rather sell to an associate than to a buyer who will change how the practice runs. Financing is usually what decides which of those happens.
We finance veterinary practice acquisitions and associate buy-ins, clinic real estate, surgical and diagnostic equipment, boarding and kennel facility expansion, and working capital lines. Mixed-practice veterinarians serving both companion animals and livestock operations sit at an intersection we know well, because the farm side of that book is a business we have financed for generations. Our agricultural lending page covers that side.
Medical practice loans
Physicians, optometrists, chiropractors, physical therapists, and specialty clinics all face a version of the same problem: the practice generates good income, but the balance sheet does not look like something a conventional lender wants to secure. Add student debt to a young physician's personal statement and a lot of banks stop reading.
We finance medical practice acquisitions and partner buy-ins, clinic and suite purchases, buildouts, diagnostic and treatment equipment, and working capital. We are also comfortable looking at a personal balance sheet that carries meaningful education debt, because in this profession that debt is a feature of the career stage rather than a warning sign. What we care about is what the practice produces and whether the plan holds.
Insurance agency loans and perpetuation financing
An independent insurance agency is almost pure goodwill. The asset is a renewing book of commissions, and it is one of the few things a bank can lend against that produces predictable cash without any equipment behind it. Most large banks do not know how to underwrite it. We do.
We finance agency acquisitions, book-of-business purchases, and perpetuation loans that let a producer buy out a retiring principal. Agency perpetuation is a specific and under-served kind of lending, and the alternative for most Minnesota agencies is selling to a national aggregator. If you would rather keep the agency local and independent, financing is the mechanism that makes that possible.
Title company and escrow account banking
Title and escrow companies come to a bank with a different question than everyone else on this page. You are not primarily looking to borrow. You are looking for a bank that handles escrow and earnest money accounts correctly, reconciles cleanly, moves wires reliably, and understands what your underwriter and the state expect from your account structure.
We handle escrow and trust account structures, wire and ACH origination, positive pay and other fraud controls, and the reporting your audits require. Real estate closing volume also swings hard with the season and with rates, so the operating account and the line behind it need to be built for that. The treasury management guide covers the account and control side in detail.
Technology and SaaS company banking
Software companies do not look like anything else a community bank sees. Revenue is contracted and recurring, growth consumes cash rather than producing it, and there is often nothing on the balance sheet to secure. That combination sends most tech founders straight to a coastal specialty lender or to equity they would rather not give up.
We work with Minnesota software, internet, and technology companies on operating accounts and treasury structures built for subscription billing, lines of credit, equipment and infrastructure financing, and owner-occupied real estate when the company is ready to stop renting. We are candid about the boundary: a pre-revenue company burning capital toward a raise is a venture problem, not a bank problem, and we will tell you that in the first meeting rather than the fourth.
Treasury management for professional practices
The loan usually gets all the attention and the operating account does most of the damage. Practices lose money to slow collections, to fraud on unprotected accounts, and to staff time spent on payments that should move themselves.
| What it does | Why practices use it |
|---|---|
| Remote deposit capture | Deposit checks from the office instead of driving to a branch. Matters most for practices collecting patient or client payments at the desk. |
| ACH origination | Payroll, recurring client billing, and vendor payments without paper. |
| Positive pay | Fraud control on issued checks. A practice with a small back office and a large trust or escrow balance is a target. |
| Wire services | Real estate closings, large client disbursements, and equipment purchases. |
| Account analysis | See what the banking relationship actually costs, itemized, instead of guessing. |
| Trust and escrow structures | IOLTA for law firms, escrow for title companies, and the reconciliation reporting each requires. |
What your lender will review
Nothing here is unusual, and having it ready shortens the process considerably.
| Item | What we are looking at |
|---|---|
| Practice financial statements and tax returns | Three years where they exist. For an acquisition, the seller's as well as your own. |
| Personal financial statement and tax returns | Owners and guarantors. Education debt is expected in these professions and is not a disqualifier. |
| Purchase agreement or letter of intent | What is being bought, from whom, and on what terms. Earlier is better than later. |
| Valuation | How the price was arrived at, and by whom. |
| Transition plan | How long the seller stays, how clients or patients are told, and what protects the book afterward. |
| Licensure and entity documents | Professional licensure, the operating or partnership agreement, and entity formation records. |
| Lease or real estate detail | Remaining term and assignment rights if you lease. Appraisal and environmental if you are buying. |
| Projections | What you expect the practice to do under your ownership, and the reasoning behind it. |
One relationship for the practice and the household
Professionals often end up with the practice loan at one institution, the operating account at a second, and the mortgage at a third, because each was arranged at a different career stage. Consolidating them is not just tidier. It means the person underwriting your home purchase already understands the income the practice produces, and does not have to be taught it from scratch. If that is worth doing, say so at the first conversation.
Common questions about professional practice loans in Minnesota
Which banks provide customized financing to professional service firms in Minnesota?
Look for a lender that underwrites goodwill rather than only hard collateral, keeps the credit decision local, and has written practice acquisition loans before. Security Bank & Trust Co. finances law firms, accounting and CPA practices, dental and medical and veterinary practices, insurance agencies, title companies, and technology companies across McLeod County, Carver County, and the Twin Cities metro. Every credit decision is made in Minnesota by people you can meet.
What is the best business loan for a professional practice?
It depends on what the money is for. An ownership change is usually a term loan, often with an SBA 7(a) guarantee because the asset is largely goodwill. A building purchase is usually conventional owner-occupied real estate financing or SBA 504. Equipment is an equipment term loan matched to the useful life of the asset. Seasonal or receivable swings call for a revolving line of credit, not a term loan. Most practices end up with two or three of these rather than one.
Can I get both business and personal financing from one bank as a professional?
Yes, and there is a real advantage to it. When the practice loan, the operating accounts, and your mortgage sit with the same bank, the lender reviewing your home purchase already understands how the practice produces income and does not have to be re-educated on it. Ask for it at the first conversation so the relationship gets built that way from the start.
How do I finance buying into a partnership?
A buy-in is financed as a term loan sized against the distributions your ownership share will produce. Two documents drive the structure: the partnership agreement, which determines what collateral is available and what happens on a default or a departure, and the valuation, which determines the price. Bring both before you sign anything. Structural problems in a partnership agreement are far easier to negotiate at letter-of-intent stage than after execution.
Can I finance a dental practice acquisition in Minnesota?
Yes. Dental practice acquisitions and associate buy-ins are among the most common professional practice loans we write. We look at the practice's production and collections history, the patient base, your clinical experience, the transition period the selling dentist has agreed to, and the condition and age of the operatories and equipment. Financing for a new buildout or equipment replacement can usually be structured alongside the purchase.
How do veterinary practice loans work?
Much like dental. We underwrite the clinic's revenue history, the client base, your experience, and the transition plan, then structure a term loan for the purchase, often with an SBA guarantee. Real estate, surgical and diagnostic equipment, and boarding or kennel expansion can be financed at the same time or separately. Mixed practices serving both companion animals and livestock operations are well within what we understand, because the farm side of that book is a business we have financed for generations.
Do you finance buying a CPA practice or a book of business?
Yes. Purchasing a retiring practitioner's client list is one of the most common transactions in the profession, and we treat it as an acquisition rather than as a general working capital request. We look at client retention history, the concentration of the book, the fee mix between recurring compliance work and one-time engagements, and how long the seller will stay on to introduce clients. Seasonal working capital for tax season is typically structured as a separate revolving line.
Can a Minnesota law firm open an IOLTA account with Security Bank?
Yes. We support the Interest on Lawyers' Trust Accounts program, which directs interest on pooled client trust accounts to civil legal services for Minnesotans who could not otherwise afford representation. We handle the account setup and the reporting the program requires. Firms carrying meaningful trust balances should also review positive pay and other fraud controls, because client trust accounts are a known target.
Do you finance insurance agency acquisitions and perpetuation?
Yes. An independent agency's value is a renewing book of commissions, which is goodwill rather than hard collateral, and many larger institutions will not underwrite it. We finance agency acquisitions, book-of-business purchases, and perpetuation loans that let a producer buy out a retiring principal. For a Minnesota agency that would rather stay independent than sell to a national aggregator, financing is usually what makes that possible.
What does a title company need from a bank?
Correct escrow and earnest money account structures, clean and timely reconciliation, reliable wire origination, and fraud controls that satisfy your underwriter and your auditors. Closing volume also swings with the season and with the rate environment, so the operating account and any line behind it should be built for that swing rather than for an average month.
Does the SBA guarantee professional practice loans?
Yes. SBA 7(a) is used regularly for practice acquisitions and partner buy-ins, because the guarantee lets a lender extend a longer term and work with less hard collateral than a conventional loan would need. That matters when the asset being purchased is goodwill. SBA 504 is the usual structure for long-term owner-occupied real estate such as a clinic or office building. On either one your lender builds the file and presents the credit locally.
How long does a practice acquisition loan take?
The timeline depends far more on how complete the information is than on the bank. Practices that arrive with three years of financial statements and tax returns, a signed letter of intent, a valuation, and a written transition plan move quickly. The most common delay is a purchase agreement that was executed before anyone talked to a lender, which sometimes has to be renegotiated. Call at letter-of-intent stage and the process is materially shorter.
Keep reading
Let's talk about the practice
Whether you are three years from buying in or three weeks from closing, the conversation is worth having now. Tell us what you are looking at and we will tell you plainly whether we can finance it and how we would structure it.
Growing, together.
All loans and lines of credit are subject to credit approval, and terms are determined at underwriting. SBA loan programs are subject to eligibility requirements and program terms set by the U.S. Small Business Administration. Deposit and treasury management services are subject to account agreements and applicable fees. Page last reviewed July 2026.