Government-backed loans to doctors have surged more than 10-fold in the past decade, a trend industry insiders say is a red flag that doctors in America are in financial distress.

From 2000 to 2011, Small Business Administration loans to physicians' offices, including private practice doctors and mental health specialists, ballooned to $675 million from less than $60 million.

"The fact that SBA loans have jumped this much is eye-opening," said Tom Blue, executive director of the American Academy of Private Physicians. "It definitely speaks to the story that doctors are struggling."

Many doctors, especially those operating solo or small private practices, are cash-strapped -- taking out loans to make payroll and pay their monthly business and medical expenses, said Blue.

Among the factors they cite for their shrinking revenue: falling insurance reimbursements, changing regulations and rising business, medical liability and drug costs.

Consequently, Blue said a growing number of independent physicians are also seeking loans to transition their practices to more lucrative, insurance-free, business models.

Doctors tend to apply for SBA loans, which are government-guaranteed bank loans, because they are easier to get and the interest rates on them can be lower than the ones on regular loans.

Loan lifeline. Dr. Zuhdi Jasser, a family physician with a private practice in Phoenix, isn't surprised by the surge in loans.

"Many of us [independent doctors] are becoming a dying breed," he said. "And those of us remaining are struggling to survive."

Jasser said his own income has slumped 30% in the past two years, which has prompted him to take out loans to cover the rising costs of supplies and increasing payroll.