For SBA lenders
Short answer
The SBA primarily considers the buyer's relevant industry experience, management background, and the strength of the proposed management team to ensure successful operation post-acquisition.
When underwriting a business acquisition, the SBA places significant emphasis on the buyer's and their management team's experience. This includes direct experience in the industry, general business management skills, and a demonstrated ability to operate and grow a business. A strong management team, even if it includes new hires, can mitigate concerns about a buyer's limited direct experience.
A buyer with 15 years of experience in retail management, but new to the specific grocery store industry, applies for a 7(a) loan to acquire a grocery store. The lender highlights the buyer's transferable skills in staff management, inventory, and customer service, and notes the retention of key existing staff to bolster industry-specific knowledge.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
7(a) Loan Program — Terms, Conditions, and Eligibility
U.S. Small Business Administration · Official SBA source
SOP 50 10 - Lender and Development Company Loan Programs
Last checked 2026-06-13. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-13 · SBA sources checked through 2026-06-13. DealRoom analysis of public SBA 7(a) lending records (FY2020–present). Grounded in the current SBA rulebook; verify against the official sources above before relying on it for a live deal. Not legal, tax, or financial advice, and not an approval decision.
More on change-of-ownership underwriting
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