Borrower guide · Use case
SBA loan for buying a business
The 7(a) program is the workhorse of business acquisitions. If the numbers support the debt, an SBA loan can put a profitable business in your hands with a fraction down.
The money in: injection and seller notes
You inject at least 10% of total project cost. On an acquisition, a seller note on full standby can fund up to half of that, so your cash out of pocket may be 5%. The rest is the SBA loan. Size it exactly with the injection calculator.
The valuation
For a change of ownership the SBA requires an independent business valuation when the financed goodwill is significant. It protects you as much as the lender — overpaying is the classic way an otherwise good acquisition fails.
Can it carry the debt?
The deal lives or dies on debt-service coverage. Underwriters want the business’s seller’s discretionary earnings, adjusted for add-backs and your new debt and salary, to clear the payment with room to spare. The affordability calculator runs it.
Business affordability calculator
Enter the cash flow and asking price to see whether the business services the debt — and what you can responsibly offer.
See what you can pay →Acquisitions in the record
our dataAcquisitions skew larger than the $178,850 median, and most funded deals fall between $55k and $500k. The right lender matters: our matcher shows who funds acquisitions in your state and industry, and at your size.
Common questions
How much do you need down to buy a business with an SBA loan?
A 10% equity injection, of which a seller note on full standby can fund up to half — so as little as 5% of your own cash.
Do I need a business valuation?
Yes, an independent valuation is required for a change of ownership with meaningful goodwill. It also protects you from overpaying.
How do lenders decide if I can afford it?
On debt-service coverage — the business’s adjusted earnings versus the new loan payment plus your salary. They want a cushion, not a break-even.
Keep going
Rules described here follow SBA SOP 50 10 8 (effective June 1, 2025) and can change; lenders add their own overlays. This is education, not advice — confirm specifics with your lender. Figures cited as “our data” come from the SBA 7(a) & 504 FOIA record, released 2026-06-30.