Distance Purchase

January 12, 2026

by a professional from Texas A&M University - Mays Business School in Amarillo, Texas, United States

Would love to hear some stories of purchasing a business that is more than 5 hour drive from where you live. I cannot relocate but my location has limited options of businesses available.

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Reply by a lender
from Cornell University in Los Angeles, CA, USA

Hi ^redacted‌ - both Sean and Brad are correct on this point. One important piece that has not been said explicitly is that under SBA 7(a) rules, passive or absentee ownership is not allowed. The buyer must be a full-time, active operator. So distance is not just a risk issue, it can become an SBA eligibility issue. Separately from SBA rules, this is still an operating business, not a financial investment. Being onsite early is critical to understand operations, verify the numbers, and reduce execution risk. That is why lenders get nervous with distance deals. However, there are clear ways to make a deal like this work. If you ever need help reviewing a deal, I am happy to help. We have a lot experience financing different companies via the SBA. We work with all the major SBA lenders. The bank pay us after your loan closes, so this is a 100% free service for you.You can email me directly at redacted or schedule a meeting with me: https://cal.com/francodeguzman/30min. Look forward to chatting!

Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA

I concur with Sean. If you are looking for financing, it will be a big concern for lenders, unless you are buying a business that is largely remote based to begin with. You also want to be sure you are onsite to start, even if there is a good management team in place. You will be investing money and taking on a lot of risk not to be sure you are in the know with the business post-closing. The main reason lenders want buyers onsite is the default rate is substantially higher for absentee buyers. However, there are circumstances where buying something at a distant can still work out. If you are looking at strategies to mitigate this risk with lenders, I would be happy to connect. You can reach me here or directly at redacted Good luck with your search.

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