SBA Loan size

August 23, 2023

by a searcher from Murdoch University in Chicago, IL, USA

Hello,

I am a solo searcher looking at businesses in the $250,000 - $450,000 range. I'm wondering what the lowest amount loan size I could get from an SBA lender is?

Is $250k-450k too small and would some SBA lensers nit waste their time on this?

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

Great question. The problem that you can run into is that it takes an SBA lender the same amount of work to do a $250,000 versus a $5 million SBA business acquisition loan. Because of that many lenders do have a limit on the size they will do for SBA 7A business acquisitions. In general we have been successful getting deals done so long as the minimum loan amount is around $350,000. I have found I typically cannot get lenders to look at the loans if it is below that. Keep in mind, that closing costs, government guarantee fees, and working capital can get rolled into the loan, so if you have a purchase price slightly higher than $350,000, once everything gets rolled in your loan might still be around $350,000.

We are a Commercial Loan Brokerage shop with over 500 funding partners and over 50 SBA lending partners. We would be happy to look at anything you are working on. You can reach me here or directly at redacted

Reply by a lender
from Belmont University in Nashville, TN, USA

This loan size can be tricky given the costs that are involved in doing an acquisition. However, I feel the benefits of the longer term with SBA still makes the 7a program a great fit for loans under $500,000. I am always happy to look at the transaction and provide you with a funding scenario. I am a loan officer at Live Oak Bank on a team that is focused on providing SBA financing across all industries nationwide. Live Oak is the #1 SBA 7(a) lender by dollar volume amount for FY 2021 and###-###-#### Feel free to reach out redacted

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