Trade business acquisition in GA without a license?

November 24, 2025

by a searcher from Emory University - Goizueta Business School in Atlanta, GA, USA

Has anyone without a license acquired a trade business (plumbing, hvac, electrical, etc.) in GA since the new SBA regulations? I’d love to hear your experience and how you handled the licensing hurdle (owner staying on with PG, internal promotion, hire new license holder, etc) Thanks !

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

Great question. Of course being sure you have the license in place at closing to operate any technical business you acquire is going to be required by any sort of lender, and is certainly a condition of getting an SBA 7A loan. However, what is required by individual SBA lenders varies quite a bit. The preference is always that the owner / guarantor has the license or is on a short path to get that license. However, when that is not possible (maybe it takes years to get the license), you can still get the transaction done without the owner / guarantor having the license under the following circumstances: 1) An owner of the business is not required by state law to be the licensee. If this is the case, then you would need to bring someone into the transaction and provide them with ownership or give an existing employee ownership that has the license to be sure you meet this state requirement. 2) You can rely on the seller's license for up to a year (so long as it is allowed by state law) but most lenders are going to require you to have a backup to that seller like a key employee or someone outside the organization that can replace that license in the interim. 3) My typical recommendation to clients is to provide the lender with multiple avenues for you to maintain the license. These might be the following: a) the seller will maintain the license for one year; b) during that time I as the owner can get the license; c) or during that time a key employee can get that license and I plan to give them equity; d) or I plan to hire someone with the license and give them equity; e) or there are multiple people in the business with the license so I do not need to give anyone equity as they can maintain it. The more paths you have to easily keep the license, the less risk the lender sees. Lastly, please keep in mind if a key employee holds the license, there is a chance the Bank will want that employee to sign at least a limited guarantee on the loan. Lenders want this to ensure that key employee will not leave suddenly and leave you without a business you can operate because you do not have the necessary license. Keep in mind some Banks will not do the deal at all unless an owner / guarantor holds the license. I hope this helps. If you would like to discuss licensing further, you can reach me here or directly at redacted

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

Hi ^redacted‌ - nice to meet you and glad to give a comprehensive answer on this one. Under the new rules, if you don’t personally hold the required license, SBA lenders must see a licensed individual committed to staying with the business for multiple years. This goal requires the employee to be on a multi-year agreement alongside retention bonuses. Be mindful that each state has their own rules and requirements for individuals holding licenses depending on the industry. The seller can fill that role for up to 12 months after closing, but beyond that the licensed person must be either an employee or a part-owner. Some lenders also require that employee to hold a small equity stake (typically 0.5% to 2%). In rare cases, lenders may even ask the licensed employee to provide a limited or personal guarantee. We have a lot of experience financing licensed trade businesses like plumbing, HVAC, and electrical via the SBA. If you ever need help talking through a deal, I am happy to help. We work with all the major SBA lenders. The bank pays 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!

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