SBA loan basics
Short answer
Yes, acquiring an existing business is one of the most common and ideal uses for an SBA 7(a) loan. This includes purchasing the business's assets, goodwill, and sometimes the real estate it operates from.
SBA 7(a) loans are a popular financing tool for change of ownership transactions, allowing buyers to finance up to 90% of the purchase price. The loan can cover business assets, inventory, leasehold improvements, and working capital. Specific rules apply regarding seller involvement and any seller financing that counts towards equity.
A buyer wants to acquire a printing business for $1 million. They can use an SBA 7(a) loan to finance $900,000, covering the business assets, customer list, and initial working capital, with a 10% cash injection from the buyer.
Insider move
Lenders perform extensive due diligence on the acquired business's financials, valuation, and legal structure. They ensure the buyer has sufficient experience and that the business will generate enough cash flow to support the new debt.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 - Lender and Development Company Loan Programs
SBA 7(a) Loans Overview
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 what it can be used for
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