Here are some helpful resources that can provide guidance and support for entrepreneurs looking for help understanding business loans or acquisitions:

  1. Small Business Development Centers (SBDCs): SBDCs provide free or low-cost consulting services and training to help small businesses navigate various aspects of entrepreneurship, including business loans and acquisitions. You can locate your nearest SBDC through the SBA's SBDC Locator tool.
  2. SCORE: SCORE is a nonprofit organization that offers free mentoring and resources to small business owners and entrepreneurs. SCORE mentors provide guidance on business planning, funding strategies, and navigating the loan application process. 
  3. Business brokers: Consider engaging the services of a reputable business broker specializing in acquisitions. Websites like BizBuySell and provide listings of businesses for sale.
  4. Industry associations: Explore industry-specific associations and organizations that offer resources and support for businesses in your target industry. Examples include the National Restaurant Association for the restaurant industry, the National Association of Realtors for the real estate industry, and the International Franchise Association for franchising opportunities. 
  5. Local economic development organizations: Local economic development organizations or chambers of commerce can provide information about regional loan programs. Contact your local chamber of commerce or economic development agency for assistance. 


What’s the required equity contribution for an SBA business acquisition loan?

Generally, SBA loans require a down payment ranging from 10% to 30% of the total project cost. However, specific equity contribution percentages may vary based on factors like your creditworthiness, industry type, and the lender's assessment of the business's risk.

How is the value of the business determined for an SBA acquisition loan?

The value of the business you’re acquiring is typically determined through a combination of methods, including (but not limited to) appraisals, financial statements, and industry benchmarks. The lender will assess the business's financial performance, including its revenue, profitability, and cash flow, to evaluate its value.

About the Author

Christopher Murray

Christopher Murray

Personal Finance Expert

Christopher Murray is a professional personal finance and sustainability writer and editor who enjoys writing about everything from budgeting and saving to unique investing options like SRI and cryptocurrency.

More about me

Related Articles

Show More