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Can I get an

SBA Loan
to buy a
business?


Are you looking at an SBA loan or SBA financing for a business venture?

Schedule a Free Consultation!

SBA financing is one of the best financing options out there for a variety of reasons.

Some of these reasons include:

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  • Buying a business
  • Purchasing commercial real estate
  • Partnership buyouts and buy-ins
  • Refinancing business debt
  • Equipment financing
  • Financing a franchise

If you are looking at doing any of the above options, an SBA loan may be the perfect fit for your business needs!

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There are many advantages and benefits of SBA loans for small businesses. They include competitive rates, term lengths, and low-down payments. SBA financing makes it easy for individuals like you to get the best terms possible for financing a business. The best part, Peak Business Valuation is here to help you! Our SBA lender matching process can help ensure you get the best SBA financing out there.

Purchasing a business or real estate?

If the answer is yes, then you might be using debt to acquire the business
or commercial real estate.

The most popular loan programs out there are the Small Business Administration (SBA) programs, primarily the SBA 7(a) Loan program and the SBA 504 Loan program.

Peak Business Valuation currently works with nearly 100 SBA lenders across the country. We provide third-party SBA business valuation and SBA equipment appraisal services. As such, we have built strong relationships with all of these SBA lenders.

As a result of these SBA partnerships, we have been able to help hundreds of individuals looking to acquire a business, buy out a partner, or purchase commercial real estate through an SBA loan. We would love to help you!

Schedule a Free Consultation!

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Proven Success through our SBA Lender matching process


Our large and ever-expanding network of SBA lenders is open to you. More importantly, when we speak with you over the phone, we will make sure that you are personally introduced to SBA lenders that fit your individual needs.

When it comes to the SBA 7(a) Loan Program, we ask you the following questions:

  • Why do you need the funding?
  • What industry does the business operate in?
  • What is the current cash flow of the business?
  • What collateral is available in the business?
  • If you know your credit score, what is your credit score?

We ask several questions beyond this, but these are the primary questions we address to better understand your SBA financing needs. Once we understand your financing needs, we make personal introductions to SBA lenders who will best be able to assist you along your loan journey. If you would like to have a call with us, schedule an appointment by clicking on the link below.

Schedule your free
consultation today to get started!

When it comes to the SBA 504 Loan Program,
we ask you the following questions:

01


Will the funds be used to purchase real estate for a start-up or for an existing business?

02


If the funds will be used for an existing business:

  1. What industry does the business operate in?
  2. What is the current cash flow of the business?

03


If you know your credit score, what is your credit score?

Again, we ask several questions to understand your individual situation and financing needs. A personal introduction is then made to an SBA lender or SBA lenders once we have a better feel for your need and who would be best to help you secure SBA financing!

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What documents do I need to collect for an SBA Loan?


As you begin to talk with an SBA lender, you will need to start gathering the following information:

  • Business Plan
    • This is a document that you will need to create. If you need a template, you can use the following template: Click Here
  • Personal Income Tax Returns
  • Personal Financial Statement, known as Form 413: Click Here
    • You will need to document savings accounts, retirement accounts, investments in stock or bonds, salaries, etc.
  • Form 1919: Click Here
    • This is the most difficult document to fill out. Depending on the SBA lender you work with, the SBA lender or SBA bank will have a video and easy-to-use form fill out to help you with this document
  • Legal Documents
    • Third-party contracts, if applicable
    • Franchise agreements, if applicable
    • Commercial lease agreements, if applicable
    • Judgments or bankruptcies for the business and you, if applicable
    • Lawsuit documentation, if applicable
    • Articles of Incorporation or Operating Agreement for your new entity
    • Business license and registration for your new entity
  • SBA Form 912: Click Here
    • This is required to document your personal history, primarily criminal history

Schedule a Free Consultation!

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Get Assistance with SBA Financing

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At Peak Business Valuation, we help hundreds of individuals a year get SBA funding.
We have been a part of the SBA loan process for years and we are here to help
address your questions and match you with the right SBA lender!

If you are interested in learning more about
SBA Loans and SBA financing, refer to the following featured articles:

• 4 Steps to Obtaining an SBA Loan
• Using an SBA Loan to Buy a Business
• Choosing an SBA Lender
• Finding an SBA Lender

• Ask These 8 Questions Before Obtaining an SBA Loan
• Business Valuations for SBA Loans
• Advantages of SBA Loans
• Denied for an SBA Loan

Frequently Asked Questions About SBA Financing

At Peak Business Valuation, we help hundreds of individuals a year get SBA funding.

We have been a part of the SBA loan process for years and we are here to help address your questions and match you with the right SBA lender!

What can I get an SBA loan for?

• Debt Refinancing
• Working Capital
• Business Acquisition
• Equipment
• Business Expansion
• Franchise Financing
• Commercial Real Estate

 

Are there any reasons why I would not qualify for an SBA Loan?

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Yes. There are exclusions, which consist of

  • Depending on the size of the business and the industry it operates in, the company may not qualify
  • Funds cannot be used to pay off unsecured creditors
  • The business is run as a non-profit
  • The business cannot be involved in lending, rental real estate, investing, or speculative activities
Peak Business Vluation Average Term

What is the average term of an SBA Loan?

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The loan term will vary depending on the reason for the SBA loan. However, the average term for an SBA loan is between 10 – 25 years.

What is the maximum SBA Loan amount?

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  • Currently, the maximum loan amount is capped at $5 million for the SBA 7(a) Loan Program. There are no minimums, which is great news for small businesses.
  • Programs like the SBA Express Loan have a maximum loan amount of $500,000.
Peak Business Vluation Personal Guarantees

Are personal guarantees required to qualify for an SBA Loan?

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Yes. All owners of 20.0% or more equity interest in the borrowing entity are required by the SBA to guarantee the loan.

What are the credit requirements?
How does a lender evaluate my creditworthiness?

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The business you are looking to acquire must show that you can cover business expenses, a draw for yourself, and the ability to cover your loan payment. The ratio looked at here is called debt-service coverage. The lender will check personal credit histories by requesting credit reports.

Does the bank look at any personal collateral?

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More likely than not, yes. The collateral most often taken into consideration is a lien on your home.

Securing SBA Financing

Peak Business Valuation is here to help you secure SBA financing for all your small business needs.

We would love to connect you with an SBA lender who best fits your individual needs! Our dozens of connections to SBA lenders across the country make us the perfect resource. Schedule a free consultation today to get started with SBA financing. We are happy to answer any questions you have about obtaining an SBA loan and SBA financing.

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