Corporate Professionals Leaving the 9-to-5
Military Veterans Using SBA Programs
First-Time & Serial Business Buyers
Acquisition Entrepreneurs & Search Funders
$5 million
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:
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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
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
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
No, our services are provided at no charge to buyers. We are compensated by our lender partners for facilitating financing, ensuring you get the best loan options at no additional cost.