SBA loan basics
Short answer
Yes, acquiring an existing business, including its real estate, equipment, inventory, and even goodwill, is one of the most common and ideal uses for an SBA 7(a) loan.
SBA 7(a) loans are frequently used for business acquisitions, covering the full purchase price (less equity injection), working capital for post-acquisition operations, and associated closing costs. This includes both asset purchases and stock purchases, provided the business meets SBA eligibility criteria.
A buyer wants to acquire an existing manufacturing business for $1,000,000. An SBA 7(a) loan can finance $900,000 (after a 10% down payment), covering the machinery, customer lists, and building, plus an allocation for initial working capital.
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
SBA 7(a) Loans Overview
Last checked 2026-06-14. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-14 · SBA sources checked through 2026-06-14. 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.
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