SBA loan basics
Short answer
Yes, SBA 7(a) loans are frequently used to finance the acquisition of existing businesses, including franchises. This is one of the most common and popular uses of the program.
The 7(a) program explicitly permits financing for a change of ownership, including the purchase of an existing business or an existing franchise location. This allows entrepreneurs to acquire established operations rather than starting from scratch, leveraging existing customer bases and cash flow.
An individual wants to buy an existing dry-cleaning business with an established client base and equipment. An SBA 7(a) loan can cover the purchase price of the business, including its assets, inventory, and goodwill, as well as providing initial working capital for the new owner.
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
Types of 7(a) Loans
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 uses of funds
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