Loan program

Business Acquisition Loan

Financing to buy an operating business — typically SBA 7(a) or seller-financed.

Rate range

9.50% – 11.50%

Max LTV / LTC

up to 90% of purchase

Term

10 yr

Cash-flow-based loans (with SBA guarantee) for buying a profitable business.

Best for

First-time buyers acquiring cash-flowing businesses
Franchise buyers
Search-fund and self-funded searchers

Eligibility

10–15% cash-to-close (buyer equity)
Related industry experience
Target business with 2+ years of profitability
680+ FICO on the buyer

Documents needed

Letter of intent + purchase agreement
Target's last 3 years tax returns + interim financials
Buyer's tax returns + PFS
Business plan / 100-day plan
Seller resume + operations write-up

Pros

Low buyer equity (10–15%)
Seller can carry a portion (often required)
Long amortization improves cash flow
SBA guarantee reduces bank risk

Considerations

60–90+ day close
Personal guarantee required
Detailed operational + industry underwriting
SBA fees add 2.5–3.75% of loan amount

Buying an existing profitable business is often the fastest path to seven-figure equity. SBA 7(a) is the dominant financing tool for deals up to $5M.

Typical structure: 10% buyer equity + 10% seller note (standby) + 80% SBA-guaranteed bank loan. Deal pricing usually 2–4x SDE for main-street businesses.

Common questions

Do I need industry experience?

Strongly preferred. Franchise systems and 'transferable' businesses (accounting, e-commerce) are exceptions.

Can I roll equity from a 401(k)?

Yes — ROBS (Rollover as Business Startup) structures let you use qualified retirement funds as buyer equity without an early-withdrawal penalty.

Ranges shown are educational. Actual pricing and terms depend on your credit, the property, and current market conditions. Nothing on this page is an offer of credit.