Tailored financing solutions

The maximum amount that can be financed to buy a business with an SBA-7(a) Loan is $5,000,000. Your personal situation (credit, available down payment, other debts) or financial records of the business being purchased may result in a lower amount.

Each bank has its own lending standards, but here are some general criteria SBA lenders typically use to assess your eligibility:

• Credit score, +700 and you’re normally in the clear
• Relevant industry experience, as outlined on your resume
• Debt Service Coverage Ratio, usually between 1.15 and 1.5
• Capital, a 10% down payment is standard, but can be less

Our role is to match you with lenders who have a track record of funding deals like yours and help you navigate the loan application process.

Typically, you’ll want to plan for a down payment of at least 10%. However, each bank has its own lending criteria, so this can vary.

If you’re looking to put down less cash, read this article.

Yes, if you own 20% or more equity in the business, a personal guarantee is required. As an entrepreneur, taking calculated risks is part of the game.

Over 95% of SBA 7(a) loans used for business acquisitions are successfully repaid. These loans commonly have a 10-year repayment term.

If you start a business from scratch, the Bureau of Labor Statistics says there’s a 70% chance your business will fail within 10 years.

May the odds be ever in your favor – Learn how we can help here.

The repayment period for buying a business is commonly 10 years. If you’re purchasing a business that includes real estate, this period may be extended to 25 years.

Most SBA loans come with variable interest rates, which means the rates can change over time based on market conditions. These rates are usually quoted on a “Prime +” basis.

The “Prime” rate is determined by the Federal Reserve and published monthly in the Wall Street Journal. The “+” depends on factors like the size of your loan (larger loans typically have a smaller “+”), your credit score, and the lender’s internal pricing policies.

We shop your loan to minimize the “+” by connecting with lenders who have a strong appetite for deals like yours.

Most SBA loans take about 45 to 75 days from application to funding. This is the timeline we see in practice, not just what’s in the lender’s marketing brochure. There are exceptions, and the timeline can be shorter or longer depending on various factors, including how quickly you respond to information requests.

We help you navigate the process by working with lenders who have a track record of timely closings. Plus, we provide gentle nudges to both you and the lenders to keep things moving smoothly and maintain momentum.

Not all lenders are created equal. You want to work with those who will offer your buyer the best terms possible and have a track record of closing deals like yours.

Prequalifying with a lender suited to your specific business is crucial. Even a qualified buyer may not understand all the nuances, and you can save a lot of time and headaches by steering them in the right direction.

For more details on matchmaking your business with SBA Lenders, read this article.

Yes, you can use an SBA (7a) loan to buy out your business partner.

We guide you through the process, ensuring everything goes smoothly. The down payment for buying out a partner typically ranges from zero to ten percent, depending on the specifics of your deal.

Yes, you can use an SBA loan to buy the real estate your business occupies. We help you run the numbers on ownership vs. renting scenarios to see what makes the most sense for you.

There are also additional benefits to owning real estate, such as depreciation, building equity, and making the eventual sale of your business more attractive.

For more details on why owning the real estate your business occupies helps when it comes time to sell, check out this article.

Even if you think an employee is the most deserving buyer for your business, they likely don’t have enough cash. We can help your employee buy your business with an SBA (7a) loan that requires minimal down payments.

This way, your loyal employee can become a business owner, and you’ll be paid mostly (often 90%) upfront in cash. To see how this works from an employee’s perspective, give this article a read.