{"ok":true,"canonical_url":"https://dealroom.so/glossary/business-acquisition-loan","api_url":"https://dealroom.so/api/public/glossary/business-acquisition-loan","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":"business-acquisition-loan","term":"Business acquisition loan","group":"The loan itself","definition":"Any loan used to buy an existing business. The SBA 7(a) is the most common kind for deals under $5M because it allows 10% down against cash flow.","what_it_means":"A business acquisition loan packages the purchase price, fees, and often some working capital into a single financing instrument. The SBA 7(a) dominates deals under $5M because conventional lenders rarely finance goodwill-heavy businesses — the SBA program was designed specifically for this. When buyers say they're 'getting SBA financing,' they almost always mean a 7(a) business acquisition loan with a ten-year term and variable rate.","url":"https://dealroom.so/glossary/business-acquisition-loan","official_sources":[{"slug":"terms-conditions-eligibility","title":"7(a) Loan Program — Terms, Conditions, and Eligibility","official_url":"https://www.sba.gov/partners/lenders/7a-loan-program/terms-conditions-eligibility","official_label":"View on SBA.gov","authority_tier":5,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/terms-conditions-eligibility"},{"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":"equity-injection","term":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"},{"slug":"change-of-ownership","term":"Change of ownership","url":"https://dealroom.so/glossary/change-of-ownership"},{"slug":"total-project-costs","term":"Total project costs","url":"https://dealroom.so/glossary/total-project-costs"}],"related_questions":[{"question":"Is a separate business valuation required for an SBA 7(a) acquisition loan?","url":"https://dealroom.so/sba-7a/questions/is-a-separate-business-valuation-required-for-an-sba-7-a-acquisition-loan"},{"question":"How does the SBA define 'goodwill' in a business acquisition for loan purposes?","url":"https://dealroom.so/sba-7a/questions/how-does-the-sba-define-goodwill-in-a-business-acquisition-for-loan-purposes"},{"question":"Can an SBA 7(a) loan finance inventory immediately after a business acquisition?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-loan-finance-inventory-immediately-after-a-business-acquisition"},{"question":"Do I need a business plan for an SBA 7(a) loan application for a business acquisition?","url":"https://dealroom.so/sba-7a/questions/do-i-need-a-business-plan-for-an-sba-7-a-loan-application-for-a-business-acquisition"},{"question":"What is the fastest a typical SBA 7(a) business acquisition loan can close?","url":"https://dealroom.so/sba-7a/questions/what-is-the-fastest-a-typical-sba-7-a-business-acquisition-loan-can-close"},{"question":"Can an SBA 7(a) loan cover closing costs associated with a business acquisition?","url":"https://dealroom.so/sba-loans/basics/can-an-sba-7-a-loan-cover-closing-costs-associated-with-a-business-acquisition"}],"related_tool":{"label":"SBA 7(a) payment calculator","url":"https://dealroom.so/sba-7a/calculator"}},"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 — Business acquisition loan","url":"https://dealroom.so/glossary/business-acquisition-loan","source_type":"DealRoom Data"}}