Glossary · The loan itself
In short
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.
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.
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
7(a) Loan Program — Terms, Conditions, and Eligibility
U.S. Small Business Administration · Official SBA source
Last checked 2026-06-14. 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 2026-06-14 · 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.
See which SBA lenders would fund your deal
Tell us the business, the price, and where you are — we'll point you to the lenders most likely to approve a 7(a) like yours and flag what trips up approval.
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