SBA 7a loans are based on sustainable cash flow and the buyer's qualifications. Other SBA programs like the 504 can lend against real estate, equipment and other physical assets.

Nearly all SMB acquisition deals will require a cash flow lender because there will not be sufficient assets relative to the loan amount for an asset/collateral lender. A cash flow lender is looking primarily for historical debt coverage and a solid equity structure. There are also some lenders which will lend based on subscription or ARR metrics, and this is typically only used when EBITDA is as of yet, insufficient, but ARR growth is strong.