If you're acquiring a small business, the SBA 7(a) loan program remains one of the most accessible financing tools available to acquisition entrepreneurs inredactedHere's what you need to know before you apply. **What the SBA 7(a) Covers** The 7(a) program finances up to $5 million toward a business acquisition, including goodwill, working capital, and equipment. The SBA guarantees up to 85% of loans under $150,000 and 75% above that threshold — reducing lender risk and opening doors for buyers without institutional backing. **Down Payment Requirements** Expect to put down 10% of the total purchase price as equity injection. On a $2M acquisition, that's $200,000 out of pocket. Seller notes can sometimes count toward this requirement if the lender approves a standby structure, where the seller defers payments for 24 months. **Key Eligibility Checkpoints** - The target business must be U.S.-based and for-profit - It must meet SBA's size standards (typically under $15M in net worth) - You'll need a personal credit score of 680+ - Two or more years of business tax returns showing positive cash flow **Timeline to Close** Realistic SBA timelines run 60–90 days from application to funding. Preferred SBA lenders (PLP status) can compress this to 45 days. Build this into your LOI and purchase agreement from day one. **What Slows Deals Down** The most common delays are incomplete CPA-prepared financials, title issues, and environmental assessments on real property. Have your document package — three years of business and personal tax returns, a business plan, and a debt schedule — ready before submitting. **Bottom Line** SBA financing is leverage-friendly and accessible, but process-heavy. Work with a lender who closes at least 20 SBA acquisition deals per year. Experience on their side directly compresses your timeline.