We Help Acquisition Entrepreneurs Secure SBA 7(a) Financing to Buy a Business.

Are you looking for SBA 7(a) financing? Our innovative approach is tailored to buyers like you.

“Pioneer Capital Advisory LLC is a free consultant that helps you as a business buyer find the bank that is the best fit for your deal and helps you navigate the loan process so you are able to secure the SBA financing that you need. We get paid by the SBA lender after closing, not by you as the buyer.”

Did you know this about Pioneer Capital Advisory?

Did you know that at Pioneer Capital Advisory, we're dedicated to enhancing small to medium-sized business acquisitions? Did you know we offer tailored financing solutions that transform entrepreneurial aspirations into successful, tangible business ownership opportunities? And did you know we have a solid track record of innovation and client satisfaction?

Here are a few more things to know about us:

$100+ Millions

Did you know that Pioneer Capital Advisory LLC has helped close over $100 million of SBA 7(a) loans for business buyers that have bought small to medium-sized businesses?

$300+ Millions

Did you know that Matthias Smith, President / Owner of Pioneer Capital Advisory LLC, has closed and funded over $300 million of SBA loans during both his time as a closer before starting Pioneer Capital Advisory LLC and also while running Pioneer Capital Advisory LLC?

Real Stories, Real Satisfaction

Our Recent Presentations

Explore our curated collection of presentations to deepen your understanding of our approach and the SBA loan landscape. Each piece is designed to equip you with the knowledge to navigate the complexities of business financing.

Business Acquisition Financing with SBA 7(a) loans – Discussion with Yale ETA Club
Thursday, March 30, 2023
© 2023 - Pioneer Capital Advisory LLC - intended solely for presentation purposes
March 2023
 Presentation

Business Acquisition Financing with SBA 7(a) loans – Discussion with Yale ETA Club

Insider Must-Know Facts

1

Did you know that the majority of SBA lenders require only half of the down payment to come from buyer cash? The other half can come from a full or partial standby seller's note.

2

Did you know that our innovative SBA structuring techniques have enabled our clients to minimize upfront cash contributions in their business acquisitions?

3

Did you know that SBA loans do not have balloon payments and are fully amortizing?

4

Did you know that Matthias Smith, Founder / Owner of Pioneer Capital Advisory LLC, has worked directly on over $100 Million of closed SBA loan transactions during his time working in the SBA lending industry?

Obtain The Ultimate Guide to SBA Acquisition Financing

Proven success in SBA Acquisition Financing is within reach. Fill out this form to unlock your guide

Oops! Something went wrong while submitting the form.
Contact image

Got Questions?
We've Got Answers

What is the maximum amount of financing that I am able to secure from the SBA 7(a) loan program to buy a business?

$5 million

What are my options as a business buyer for coming up with the SBA required down payment?

As a buyer, you have 3 options to come up with the SBA required down payment. You can use a combination of these 3 options. Please keep in mind, that you are required by the SBA’s lending guidelines to come up with a down payment (equity injection) of 10% which is based on the total project costs. For a business purchase, the total project costs includes the purchase price of the business + everything else (working capital, closing costs, buyer legal costs, buyer financial due diligence, SBA guaranty fee, etc.) The 3 options are those below:

  • Cash – the cash from you as the buyer and/or investors could theoretically comprise the entire 10% down payment

  • A partial standby seller’s note: This is a seller’s note that has no payments on it for the first two years after closing (during which time interest accrues but isn’t paid), followed by payments in year 3 through year 10.

  • A full standby seller’s note: This is a seller’s note that is only accruing interest while the SBA loan is outstanding. Payments can start on it and/or it can be paid off once the SBA loan has been paid in full to the bank
Please keep in mind: Banks can be (and often are) more conservative than the SBA’s baseline requirements, and most banks require that half of the 10% down comes from buyer and/or investor cash
Is there a way to avoid making a down payment on an SBA loan?

If you are doing what’s called an “expansion acquisition,” the answer is “Yes.” If you buy a business in the exact same industry (identical 6 digit NAICS code) with the exact same ownership group (both individuals and ownership percentages), same geography (subjective, but typically interpreted as the same state), then you can qualify for 100% financing between a combination of the SBA 7(a) loan and the seller’s note. Please note that your existing company will be required to either be a signer on the loan as a co-borrower or a corporate guarantor

I currently own a business and have taken out an SBA loan. Is it allowable for me to take out another SBA loan?

Yes. You are allowed to have multiple SBA loans outstanding simultaneously. You can have up to $5 million of SBA loans outstanding which you are personally guaranteeing at any point in time

If I am taking out an SBA 7(a) loan to buy a business, does my net worth need to be proportional to the loan amount? For example, if the loan amount is $2 million, do I need to have a $2 million net worth?

No. SBA and banks do not typically impose specific net worth requirements. Pioneer Capital Advisory has previously financed a 25 year old client that bought a $3.3 million home service business with a net worth of $160,000. So long as you as the buyer have sufficient post-down payment liquidity (cash and/or taxable stocks on hand) of which the amount is subjective, there isn’t a net worth concern or requirement that the SBA and/or banks typically impose