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1Scan for outdated or missing drivers - takes under a minute2Repair Windows errors before they cause bigger problems3Fix the driver behind crashes, sound loss and screen glitchesFor a U.S. small-business acquisition, start by asking lenders that finance ownership changes to screen the specific buyer, business, and deal. SBA 7(a) is one route: it can fund complete or partial changes of ownership, with a stated maximum loan amount of $5 million. Conventional bank loans, seller financing, investor capital, or a blend may also fit, but availability and terms depend on the transaction.
How do I finance buying a small business?
First define the transaction and the buyer. Are you purchasing all or part of the business? Does the price include real estate or equipment? Who will own the acquiring entity? Prepare a preliminary price allocation and a list of how the money would be used, then ask lenders which funding structures they will consider.
For SBA 7(a), the initial eligibility screen includes whether the business is operating, for-profit, located in the United States, small under SBA size rules, and in an eligible category. SBA also lists access to credit on reasonable terms from non-government sources, creditworthiness, and ability to repay among its considerations. These are screening factors, not an approval guarantee; the lender assesses the complete application and transaction. See the SBA 7(a) program page and SBA lender resources.
Expect the lender to specify what documents it needs. SBA says documentation varies with loan size and processing method. A concise first-contact summary can include the target’s location and industry, asking price, whether property is included, transaction type, your relevant background and available cash, and financial information you have about the business.
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Compare the main financing options
| Financing route | What is established | What to verify before relying on it |
|---|---|---|
| SBA 7(a) | SBA lists complete and partial changes of ownership among eligible uses. Its program page states a $5 million maximum. Applications go through participating lenders, not generally as a direct loan from SBA to the buyer. | Current ownership-change rules, buyer and target eligibility, permitted uses, required buyer contribution, term, rate, fees, collateral, guarantees, seller-note treatment, diligence, and closing schedule. |
| Conventional bank financing | A bank’s acquisition guide lists conventional bank financing as a common option. Hancock Whitney’s guide does not establish a universal down-payment percentage or terms for every lender. | Whether the bank will finance this transaction type, required equity or collateral, repayment profile, pricing, covenants, guarantees, and whether its timeline fits the deal. |
| Seller financing | The same bank guide lists seller financing as a common option. It depends on the seller’s willingness and ability to carry a note. | Payment schedule, security, default remedies, lien priority, and whether the senior lender and applicable SBA rules accept the proposed structure. |
| Investor capital | The bank guide also lists investor capital as a common option; it does not establish a standard investor structure. | Ownership and control, governance, expected return, diligence, and the effect on borrower eligibility or lender approval. |
| Blended funding | A transaction may combine sources, such as lender proceeds with seller or investor funding, but approval and treatment are deal-specific. | Agree with the senior lender on every source, lien priority, payment obligation, equity treatment, and closing condition before making an unconditional purchase commitment. |
Compare actual offers using the same assumptions: total purchase cost, cash due at closing, debt service, transition working capital, and contingencies. Ask each lender for the eligible uses, amount, term and amortization, fixed or variable pricing, fees, collateral, guarantees, required seller participation, diligence requirements, and expected timeline. Rates, fees, and lender appetite require live, deal-specific quotes.
How to find lenders and screen a deal
- Prepare a short deal summary. Include the target’s location and industry, asking price, property or equipment in the transaction, whether the change is complete or partial, your relevant experience and estimated available cash, and the target financials available to you.
- Contact lenders experienced with ownership changes. Use SBA Lender Match to connect with participating 7(a) lenders, and ask directly whether they finance acquisitions like yours. SBA directs borrowers to apply through a local lender.
- Request written, transaction-specific screening. Ask about eligibility, buyer contribution, buyer and seller documents, valuation and diligence, term, pricing, collateral, guarantees, seller-note treatment, fees, and timing. These are questions to raise, not requirements that necessarily apply to every loan.
- Compare structures on a like-for-like basis. Ask how a seller note or investor contribution affects senior debt approval and the funding needed at closing. Include transition working capital and contingencies in your calculations rather than comparing only headline purchase prices.
- Coordinate financing with the purchase process. Align lender requirements and deadlines with qualified legal, accounting, and transaction advisers. Keep appropriate financing and diligence conditions in the purchase process while the lender evaluates the deal.
Verify current SBA ownership-change rules
SBA 7(a) guarantees loans made by participating lenders; the guarantee is not the borrower’s down payment. SBA’s lender resources page, accessed in 2026, describes guarantees of up to 85% for loans of $150,000 or less and up to 75% above $150,000 for most 7(a) programs. These figures describe SBA’s guarantee to the lender, not the buyer’s required equity contribution.
Do not assume that an older equity rule still governs your acquisition. SBA’s August 10, 2023 policy summary described a 10% equity injection for complete changes of ownership above $500,000. That is historical context, not a reliable statement of the current requirement. SBA lender resources identify SOP 50 10 8.1 updates effective October 1, 2026; confirm the operative ownership-change and equity rules with the lender for the application and loan-number timing relevant to your deal. In particular, do not assume seller debt will count toward an equity contribution without that confirmation. The historical summary is available at SBA’s 2023 policy announcement.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Understand the $5 million and $10 million SBA figures
The SBA 7(a) program page states a maximum loan amount of $5 million. Separately, an SBA announcement published July 7, 2026 says that up to $10 million in combined 7(a) and 504 SBA financing became available effective July 4, 2026. The combined ceiling does not raise the maximum for a single 7(a) loan above $5 million. Whether a deal can use both programs depends on its structure and eligibility; discuss it with participating lenders. See the SBA announcement.
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