What should I know about SBA 7(a) loans and other financing programs?

Small Business Administration (SBA) 7(a) loans are a common way to finance business acquisitions. They offer loan amounts up to $5 million with repayment terms up to 25 years and competitive interest rateshttps://www.nerdwallet.com/business/loans/learn/sba-business-acquisition-loan#:~:text=SBA%207,might%20prefer%20an%20SBA%20loan. The SBA guarantees a portion of the loan—85% for loans up to $150,000 and 75% for larger loans—encouraging lenders to fund small business purchaseshttps://www.nerdwallet.com/business/loans/learn/sba-business-acquisition-loan#:~:text=SBA%207,might%20prefer%20an%20SBA%20loan. To qualify, borrowers must have good credit, operate a for‑profit business in the United States and often contribute at least 10% equity for a change of ownershiphttps://www.nerdwallet.com/business/loans/learn/sba-business-acquisition-loan#:~:text=Who%20can%20use%20an%20SBA,loan%20to%20buy%20a%20business. Lenders also evaluate business cash flow, experience and collateral. Other financing options include seller financing, conventional bank loans, friends and family, investors and combinations of thesehttps://kewlegal.com/how-to-buy-an-existing-business/#:~:text=SBA%20Loans. Each option has different down‑payment, interest and collateral requirements; blending multiple sources can make deals more feasiblehttps://kewlegal.com/how-to-buy-an-existing-business/#:~:text=Combining%20Funding%20Sources. Prime 100 helps buyers explore financing options, prepare loan packages and connect with lenders experienced in business acquisitions. We guide you through SBA 7(a) requirements, help you assess whether seller financing is appropriate and ensure your financing plan aligns with your purchase goals.