{"ok":true,"canonical_url":"https://dealroom.so/glossary/acquisition-financing","api_url":"https://dealroom.so/api/public/glossary/acquisition-financing","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"acquisition-financing","term":"Acquisition Financing","group":"The loan itself","definition":"This is a loan specifically for buying an existing business. The SBA 7(a) program is a common form of acquisition financing for small business purchases.","what_it_means":"When you're buying a business, Acquisition Financing covers the purchase price, working capital, and sometimes closing costs. The SBA 7(a) loan is ideal because it allows for longer repayment terms and lower down payments than conventional options. Focus on how the loan structure impacts your monthly Debt Service Requirements.","url":"https://dealroom.so/glossary/acquisition-financing","official_sources":[{"slug":"13-cfr-part-120","title":"13 CFR Part 120 — Business Loans","official_url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120","official_label":"View on eCFR","authority_tier":1,"publisher":"Office of the Federal Register","source_guide_url":"https://dealroom.so/sba-7a/sources/13-cfr-part-120"},{"slug":"sop-50-10","title":"SOP 50 10 — Lender and Development Company Loan Programs","official_url":"https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs","official_label":"View on SBA.gov","authority_tier":2,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/sop-50-10"}],"related":[{"slug":"7a-loan","term":"7(a) loan","url":"https://dealroom.so/glossary/7a-loan"},{"slug":"business-acquisition-loan","term":"Business acquisition loan","url":"https://dealroom.so/glossary/business-acquisition-loan"},{"slug":"total-project-costs","term":"Total project costs","url":"https://dealroom.so/glossary/total-project-costs"},{"slug":"use-of-proceeds","term":"Use of proceeds","url":"https://dealroom.so/glossary/use-of-proceeds"}],"related_questions":[{"question":"How does seller financing structure impact the required equity injection for a business acquisition?","url":"https://dealroom.so/for-lenders/questions/how-does-seller-financing-structure-impact-the-required-equity-injection-for-a-business-ac"},{"question":"How does the SBA evaluate the fair market value of goodwill in a business acquisition for financing?","url":"https://dealroom.so/sba-7a/questions/how-does-the-sba-evaluate-the-fair-market-value-of-goodwill-in-a-business-acquisition-for-"},{"question":"How does financing a high amount of goodwill impact the required down payment for an SBA 7(a) acquisition loan?","url":"https://dealroom.so/sba-7a/questions/how-does-financing-a-high-amount-of-goodwill-impact-the-required-down-payment-for-an-sba-7"},{"question":"What specific due diligence is required for seller financing that counts as equity injection in an SBA 7(a) acquisition?","url":"https://dealroom.so/sba-7a/questions/what-specific-due-diligence-is-required-for-seller-financing-that-counts-as-equity-injecti"},{"question":"Is an independent business appraisal required for a 7(a) loan financing a business acquisition with a purchase price exactly $500,000?","url":"https://dealroom.so/for-lenders/questions/is-an-independent-business-appraisal-required-for-a-7-a-loan-financing-a-business-acquisit"},{"question":"When is an independent business appraisal mandatory for a 7(a) loan financing a business acquisition with a purchase price over $500,000?","url":"https://dealroom.so/for-lenders/questions/when-is-an-independent-business-appraisal-mandatory-for-a-7-a-loan-financing-a-business-ac"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Acquisition Financing","url":"https://dealroom.so/glossary/acquisition-financing","source_type":"DealRoom Data"}}