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SBA 7(a) Business Acquisition Loans With Only 10% Down

Acquire a business or franchise, buy out a partner, or purchase a book of business with as little as 10% down and favorable terms.

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Don't Get a Conventional Bank Loan

 

Most banks consider business acquisition loans risky and thus require large down payments and offer unfavorable terms such as:

❌ Large down payment requirements  of 25% or more
❌ Higher interest rates due to the perceived risk of the loan
❌ Short repayment terms causing high monthly payments
❌ Balloon features which requires refinancing every few years
❌ Prepayment penalties for paying the loan off early
 

At LoanBud, we've helped countless people just like you get approved for a business acquisition loan using SBA-backed financing with only 10% down and favorable terms. People who want to avoid conventional bank loans.

 

LoanBud is a Division of BayFirst, an SBA Preferred Lender

Why LoanBud?

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UP TO 90% FINANCING

We provide SBA 7(a) business acquisition loans with as little as 10% down, allowing you to preserve the liquidity needed for your business.

EASIER CREDIT GUIDELINES
COMPETITIVE TERMS

SBA loans allow for below-market interest rates, longer repayment terms, and lower monthly payments compared to conventional bank loans.

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RELIABLE SERVICE

Our SBA Preferred Partner status allows us to make credit decisions internally, saving you time and providing you reliable answers.  We have funded over $1 Billion in SBA loans.

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Trust Your Business Loan to an SBA Preferred Lender

 

We help business owners obtain SBA financing to acquire an existing business or franchise with lower rates, longer repayment terms, lower down payments, and no balloon payments or prepayment penalties.  We allow entrepreneurs to expand their existing business, to acquire another, to buy out a partner, or to purchase a book of business. 
 
As an SBA Preferred Lender, your deal is processed much faster than with non-Preferred Lenders. We use our experience to properly structure your loan and provide free in-house business valuations. 
 
 

Getting an SBA Loan with LoanBud
is as Easy as 1, 2, 3...

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Schedule a Consultation

Speak with one of our experienced loan officers who will understand your goals and help create a plan.

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Know Your Options

Learn what you qualify for and what we will need to get your SBA loan approved.

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Close Your Loan

Relax as we guide you through a stress-free loan process so you can obtain your funding.

FAQ's

How does your SBA Preferred Lender Program (PLP) status benefit me?

Our PLP status allows us to bypass the SBA and make credit decisions internally, which can save you weeks of processing time.  Since we have the authority to make our own credit decisions, we can get you an answer quickly and won't drag you through the mud.

What is an SBA 7(a) Business Acquisition Loan?

An SBA 7(a) business acquisition loan allows funding up to $5 million for purchasing an existing business or franchise using SBA-backed financing.  When purchasing a business, most entrepreneurs do not have the cash on hand to pay the full value of the business, and SBA loans for business acquisition can provide up to 90% total financing. Banks consider business acquisition loans to be risky.  By having the SBA guarantee the loan, it mitigates the risk for the lender, which increases the chance of your loan being approved.  


If any of the following apply to you then you may be a good candidate for a business acquisition loan:


  • You are looking to buy an existing cash flowing business
  • You would like to buy out a business partner
  • You want to open a new location with an existing franchise
  • You want to acquire a competitor for strategic growth

Have a question about how you can use your business acquisition loan? Schedule a consultation with a LoanBud loan officer to receive a complementary analysis today.

What is the repayment term and interest rate of an SBA 7(a) Business Acquisition Loan?

SBA 7(a) business acquisition loans typically have a repayment term of 10 years, or up to 25 years if there is a real estate component.  This allows for lower monthly payments compared to a typical term loan offered by a bank, which may have a repayment term of only 5 years.  

 

Since banks generally view business acquisition loans as risky, those interest rates are normally higher than those offered by SBA-backed loans. The SBA caps the interest rate that lenders can charge and most SBA loans are the Prime plus a margin up to 2.75%. Today, the maximum interest rate lenders can charge on an SBA loan is 6.25%. 

How Long Does it Take to Get an SBA 7(a) Business Acquisition Loan?

It typically takes 45 - 60 days to close on a business acquisition loan, depending on the complexity of the deal.  Working with a non-Preferred Lender Partner can add weeks onto this timeline, as non-PLP lenders must send your application to the SBA for approval.  Our PLP status saves you weeks of processing time. 

What is the minimum credit score for SBA 7(a) loans?

In order to be approved for an SBA 7(a) loan, the borrower must have a minimum FICO score of 650.

What can an SBA 7(a) Business Acquisition Loan be Used For?

One of the benefits of using SBA financing is the ability to receive capital for multiple business needs.  Your SBA loan proceeds can be used for:

  • Buying an existing business
  • Purchasing a franchise
  • Buying out a partner
  • Working capital
  • Inventory
  • Equipment
  • and More!

Have questions about how you can use a business acquisition loan? Talk to a LoanBud loan officer today to receive a personalized analysis.

We Believe Small Business is the Backbone of America

 

We know how hard you've worked to get here and we understand how much you want to be successful. You can add to your achievements by acquiring a business, buying out a partner, or purchasing a book of business, but to do that, you'll need a business acquisition loan. The problem is, conventional bank loans require large down payments of 25% or more and can be difficult to get approved for.

At LoanBud, we believe that denying entrepreneurs access to business acquisition loans with reasonable terms is just wrong. That’s why we allow our customers to get SBA 7(a) loans to acquire a business with up to 90% financing, low interest rates, and long repayment terms.

Here’s how it works:

1) Schedule a Consultation
2) Know Your Options
3) Close Your Loan

Request a free consultation today so you can stop worrying about the financing you need to acquire a business and start growing with LoanBud.

 

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BUY COMMERCIAL REAL ESTATE

We provide up to 100% financing for SBA 7(a) loans used for the purchase of commercial real estate that is at least 51% occupied by your business.

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GROW YOUR BUSINESS

Grow your business with LoanBud FlashCapSBA Loans up to $350,000 for working capital, equipment, and more.

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LoanBud is a Division of BayFirst National Bank, N.A., Member FDIC, Equal Housing Lender NMLS ID 806183 Copyright © 2022. All rights reserved.
*Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice.

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