Delta Dental of Iowa has announced a $2 million revolving loan fund aimed at helping Iowa dentists establish or acquire private practices, with a priority focus on rural communities where access to dental care is most limited.
The fund will be administered by the Iowa Area Development Group and its subsidiary, Development Partners Network, a nonprofit economic development organization. DPN/IADG will handle loan applications, financial review and funding recommendations.
Loans will range from $50,000 to $500,000 at a fixed 1% interest rate, with repayment terms of five to 10 years. Licensed Iowa dentists purchasing an existing practice or establishing a new private practice with up to three locations are eligible to apply. While dentists in all Iowa counties may apply, priority will be given to applicants in counties designated as high priority under the Fulfilling Iowa’s Need for Dentists (FIND) Project, where access to care is considered most at risk.
April Schmaltz, president and CEO of Delta Dental of Iowa, said the fund was designed to address a financing gap that has made private practice ownership increasingly difficult for dentists facing rising education costs and limited access to capital.
“We have heard from dentists that down payments to secure full financing to build or purchase a private practice can be a hurdle to ownership,” Ms. Schmaltz said. “We want to support Iowa dentists in their long-term success by helping them bridge that gap.”
Schmaltz said the fund is intended to serve multiple purposes — supporting business succession, functioning as a recruiting tool for communities seeking to attract dentists and expanding private practice into rural areas.
Bruce Nuzum, president of IADG, said the organization brings decades of experience managing revolving loan funds and noted the broader economic impact of healthy dental practices.
“Not only do thriving dental practices deliver essential health services, but they also contribute to the vitality of local economies through job creation and supporting other community businesses,” Mr. Nuzum said.
Delta Dental of Iowa and IADG have partnered since 2008 through the FIND Project, an education loan repayment program for dentists. The revolving loan fund is the latest addition to Delta Dental of Iowa’s suite of dentist-support programs, which also includes IADAPT, a mental health program for dentists, and dental education workforce infrastructure investments.
More information about the Delta Dental of Iowa Revolving Loan Fund is available at deltadentalia.com/RLF.
Delta Dental of Iowa is a not-for-profit company that provides dental and vision benefits to more than 1.6 million Iowans.
