Sba Loan To Buy A Business May 2026

To qualify, both the buyer and the target business must meet certain standards:

: The business must be "small" by SBA size standards and operate for profit in the U.S.. sba loan to buy a business

The is the primary government-backed program used to purchase an existing business or franchise . The Small Business Administration (SBA) does not lend the money directly; instead, it guarantees a portion of the loan (up to 75-85%) for approved lenders, which reduces their risk and allows for more favorable terms like lower down payments. Key Loan Terms for Acquisitions Maximum Loan Amount : Up to $5 million . To qualify, both the buyer and the target

: The business must demonstrate enough historical profit to cover the new debt, often measured by a Debt Service Coverage Ratio (DSCR) of 1.15 or higher . Key Loan Terms for Acquisitions Maximum Loan Amount