Business acquisition loans
Buying an established business is one of the most common reasons people call us. We help you structure the purchase price, the seller note, your cash injection and any real estate so the deal makes sense on day one.
At a glance
| Who it's for | Buyers acquiring an existing business, partner buyouts, and owners expanding by acquisition |
|---|---|
| Common structures | SBA 7(a) acquisition loan, conventional term loan, seller note, real estate financed alongside the business |
| What we review | Two to three years of the seller's financials, the purchase agreement or LOI, your industry experience, and your cash injection |
| Equity injection | SBA acquisitions generally require at least 10% of the project from the buyer. A seller note on full standby can count toward part of it |
| Where | Nationwide, subject to state law |
What lenders want to see in an acquisition
- Cash flow that covers the debt: we work from the seller's tax returns and adjusted EBITDA or seller's discretionary earnings.
- A buyer who can run it: direct industry or management experience matters, and a transition plan with the seller helps.
- Skin in the game: your cash injection, plus any seller financing.
- A clean purchase agreement: asset vs stock purchase, what's included, and the working capital you'll need after closing.
Bring these to the first call
- Letter of intent or purchase agreement (draft is fine)
- Seller's last 2 to 3 years of business tax returns and a current-year P&L
- Your resume and personal financial statement
- Any broker teaser or confidential information memorandum (CIM)
No rates are quoted on this site. Terms depend on the property or business, documentation option, experience and market conditions. We'll give you real numbers after reviewing your application.
Questions about business acquisition loans
How much do I need to put down to buy a business?
For SBA 7(a) acquisitions, plan on at least 10% of the total project cost. Under current SBA rules, a seller note on full standby can cover part of that. Conventional acquisition loans often need more. We'll show you the structure before you sign anything.
Can the business's real estate be included?
Yes. If the building is part of the sale, it can usually be financed in the same transaction, often with a longer term on the real estate portion.
Does the seller have to stay on?
Not always, but a defined transition period helps, especially if you are new to the industry. We'll tell you what the lender will likely expect.
Can I buy out my partner?
Yes. Partner buyouts are a common acquisition structure, and the SBA has specific rules for them that we can walk you through.
Other programs
Tell us about your project.
About 15 minutes. No Social Security number or bank account numbers. Saves as you go.