Glossary · The loan itself
In short
Loans specifically designed to finance the purchase of an existing business. The SBA 7(a) loan is the most common type for small business acquisitions.
SBA 7(a) loans are ideal for acquisitions because they offer long terms and low down payments, preserving your working capital. These loans typically cover the purchase price, inventory, working capital, and closing costs. Focus on demonstrating strong post-acquisition cash flow to secure this type of financing.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Defined by DealRoom.so SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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