Loans for Employee/s to buy business from the owner ?

August 19, 2025

by a searcher in Illinois, USA

The current owner has been running the business for the past 4 years, and a few of us employees (myself included) are interested in buying her out. Is this possible? How complicated is the process, and what requirements or criteria do we need to meet? The owner wants to retire.

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

Yes, it is very possible to do this. There are a number of different financing options you can look to use from SBA financing to conventional bank financing. Using SBA financing you could get away with only 10% down and if you get the seller to carry a note back for 5% of the purchase price or more on full standby for the life of the SBA 7A loan (which is usually 10 years) you can get away with as little as 5% down. Anyone who will end up owning 20% or more of the business would be required to sign a personal guarantee on the loan, meaning they agree to back the loan personally. Usually lenders like to see minimum credit scores of 660. Most of the underwriting is going to be based on the businesses ability to support the requested loan amount. I would love to jump on a call to go through options and see if we can assist you with this acquisition. We have financed many employee buyouts of businesses over the years. You can reach me here or directly at redacted

Reply by a lender
from University of Southern California in Los Angeles, CA, USA

This is one of the easiest SBA loans to pull off. I’d love to help you find the right SBA lender for this deal. 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. Depending on the DSCR, I think this deal might qualify for pristine pricing (7.99% fixed). You can reach me here or directly at redacted You can also click here to schedule a meeting with me: https://calendly.com/tom-gosbaloans/30min. Look forward to chatting!

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