Why Acquisition Is the Smartest Growth Move You’re Not Making Yet
Organic growth takes time—often years. But acquisition offers instant access to revenue, customers, talent, and infrastructure. When done right, it can catapult your business years ahead of schedule.
Whether you’re in HVAC, e-commerce, professional services, logistics, or healthcare, buying a strategic competitor can:
- Double your market share overnight
- Eliminate direct competition
- Expand into new regions or service lines
- Add experienced team members
- Boost profitability through economies of scale
The only catch? Acquisitions usually require significant capital—and most business owners don’t have millions in liquid cash.
That’s where the SBA 7(a) loan comes in.
What Is an SBA 7(a) Loan—and Why Is It Perfect for Acquisitions?
The SBA 7(a) loan is the #1 financing tool for small business acquisitions in the U.S., backed by the U.S. Small Business Administration. It lets you buy an existing, cash-flowing business with:
- Low down payments (as low as 10%)
- Long repayment terms (up to 10 years)
- No balloon payments
- Competitive interest rates (Prime + ~2.75%)
- Flexible use of funds, including goodwill, working capital, closing costs, and seller financing
For many deals, 100% financing is achievable through seller participation or equity rollovers—without raising outside capital or giving up equity.
Who Qualifies for an SBA Acquisition Loan?
Here’s a general profile of what lenders look for in buyers:
Personal credit score of 680+
Better scores get better rates and easier approvals.
Relevant business experience
You don’t need to be in the exact same industry, but lenders want to see transferable skills or operational knowledge.
Cash injection (10%–20%)
This doesn’t always have to be all-cash—it can include seller financing, earnouts, or equity rollovers, if structured correctly (we’ll help with that).
Strong business target
The business you’re buying must show:
- 2+ years of profitability
- Clean tax returns & financials
- Consistent cash flow to support loan payments
- No major legal or tax issues
Step-by-Step Guide to Acquiring a Business with SBA Financing
Here’s how the process works—and where Funding Suite adds value at each stage.
Step 1: Identify a Qualified Acquisition Target
Look for:
- Annual EBITDA of $200K–$1M+
- Consistent historical cash flow
- Loyal customer base and good reputation
- Motivated but reasonable seller
We help you pre-screen deals for SBA eligibility before you invest time or issue an LOI.
Step 2: Structure the Deal for SBA Compliance
This is where most acquisitions fall apart—bad structure kills good deals.
We help you:
- Determine appropriate down payment mix (cash + seller note + equity rollover)
- Ensure seller financing complies with SBA standby requirements
- Structure earnouts or holdbacks (if applicable)
- Avoid red flags that stall or kill SBA approval
Examples of creative structures we’ve helped close:
- 10% down from buyer + 10% seller note on standby
- 5% cash + 5% rollover equity + 10% seller carry
- 15% equity injection with seller contributing working capital post-close
Step 3: Prepare a Bank-Ready SBA Loan Package
Lenders don’t just want tax returns—they want a clean, complete file that shows this is a smart, fundable deal.
Our underwriting package includes:
- Deal summary & buyer background
- Pro forma financials and debt coverage analysis
- Business tax returns & P&Ls
- Valuation & justification of purchase price
- Seller transition plan
- Collateral & personal financial statement
We position your deal to underwriters so they say “yes” faster.
Step 4: Match You With the Right SBA Lender
Not all SBA lenders are equal. Some love acquisitions—others hate them. Some specialize in certain industries or loan sizes.
We match you with lenders in our national network who:
- Actively fund SBA acquisition loans
- Move quickly (45–60 days, not 90+)
- Have strong closing ratios and responsive underwriting
- Offer the best rates and terms
Step 5: Close and Grow
Once your loan is approved, we help ensure:
- Legal, title, and transition docs are ready
- Escrow is funded smoothly
- The seller stays engaged for a successful handoff
- You’re ready to operate and scale
We stay involved through closing—not just until you sign an LOI.
Real Client Example: From Local Operator to Market Leader
Industry: Commercial Landscaping
Deal Size: $2.1M
Structure:
- $210K buyer cash injection
- $210K seller note on full standby
- $1.68M SBA 7(a) loan
Result:
Client absorbed the competitor’s routes, doubled recurring contracts, and increased EBITDA by 55% in year one. Funding Suite handled packaging, lender match, and approval in 43 days.
Why Work With Funding Suite?
You don’t need to be an SBA expert—we already are.
Here’s what sets us apart:
- 🧠 Strategic guidance: We act like your M&A financing advisor, not just a form filler
- 📦 Flawless SBA packaging: No wasted time, fewer surprises
- 💼 Lender access: We partner with SBA lenders across the U.S. who specialize in acquisition deals
- 🕒 Speed: Many of our clients close within 45–60 days
- 💯 Success fee only: You don’t pay us unless we get you funded (custom fee models available)
Ready to Buy a Business in 2025?
If you’re serious about acquiring a business—or already have a deal in mind—let’s talk.
With the right SBA loan strategy and a proven partner like Funding Suite, you can scale faster, smarter, and with less risk.
📞 Book a Free SBA Acquisition Strategy Call
📧 info@fundingsuite.co
🌐 www.fundingsuite.co/sba
Let us help you fund your next move.
