: Typically as little as 10% of the total project cost.
: Buyers typically need a 660+ credit score (many lenders prefer 700+) and a solid personal financial history.
The is the primary government-backed program used to purchase an existing business or franchise . The Small Business Administration (SBA) does not lend the money directly; instead, it guarantees a portion of the loan (up to 75-85%) for approved lenders, which reduces their risk and allows for more favorable terms like lower down payments. Key Loan Terms for Acquisitions Maximum Loan Amount : Up to $5 million . sba loan to buy a business
: You must provide at least 10% equity , which can come from cash savings, certain personal loans, or "seller notes" (if they are on full standby). Common Required Documentation 7(a) loans | U.S. Small Business Administration - SBA
To qualify, both the buyer and the target business must meet certain standards: : Typically as little as 10% of the total project cost
: The business must demonstrate enough historical profit to cover the new debt, often measured by a Debt Service Coverage Ratio (DSCR) of 1.15 or higher .
: The business must be "small" by SBA size standards and operate for profit in the U.S.. The Small Business Administration (SBA) does not lend
: Generally up to 10 years for business acquisitions (up to 25 years if real estate is included).