SBA change: veterans can fund the full 10% equity injection from outside sources
Big news for veterans who want to buy a business.
The SBA has announced that, starting November 11, eligible veteran buyers can fund their entire required 10% acquisition equity contribution through permitted outside sources.
On a transaction with $1 million in total project costs, that is $100,000 that could come from qualifying investor capital or seller standby financing, subject to the applicable rules and lender approval.
That could help a veteran buy an established business while keeping personal savings available for the transition.
The 10% contribution still has to be funded. Underwriting and applicable personal guarantees still apply.
The policy begins November 11, 2026, and is scheduled to run through fiscal year 2027, ending September 30, 2027.
Veterans considering a business acquisition: talk with your lender and acquisition counsel early about how this could affect your financing.
SMB Law Group helps buyers navigate acquisitions from LOI through closing. Talk with our team: redactedredacted
The SBA has announced that, starting November 11, eligible veteran buyers can fund their entire required 10% acquisition equity contribution through permitted outside sources.
On a transaction with $1 million in total project costs, that is $100,000 that could come from qualifying investor capital or seller standby financing, subject to the applicable rules and lender approval.
That could help a veteran buy an established business while keeping personal savings available for the transition.
The 10% contribution still has to be funded. Underwriting and applicable personal guarantees still apply.
The policy begins November 11, 2026, and is scheduled to run through fiscal year 2027, ending September 30, 2027.
Veterans considering a business acquisition: talk with your lender and acquisition counsel early about how this could affect your financing.
SMB Law Group helps buyers navigate acquisitions from LOI through closing. Talk with our team: redactedredacted