Considering an acquisition opportunity - is it eligible for SBA loan?

by a searcher from Louisiana Tech University - College of Business

11 months ago

I'm currently evaluating an asset sale of a specialty retail business. The business is currently closed due to the owner's passing last year. The assets include inventory that is being sold at discount and the real estate with the building on site being the home of the business for many years. I'm wondering if this business would be eligible for an SBA loan. Any insights or experiences with similar situations would be greatly appreciated. Thank you!

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lender from Eastern Illinois University

You would most likely need to do the deal like Colin stated, as a start-up loan. If you have past financial information from the seller, that can be used to help build the case for what the business can do. But it is going to be a more challenging loan to get done. There are far fewer lenders doing start-ups, especially in this market. But we would be happy to take a look at the opportunity. You can ping me here or directly at --@----.com

11 months ago | like reply | 1 like

lender from University of Missouri - Columbia

Hi Olu, when did the business cease operating? This would likely be better suited as a start-up with projections v. a business acquisition if there isn't cash flow to underwrite. email me at --@----.com or###-###-#### if you would like to discuss

11 months ago | like reply | 2 likes

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