SBA 7(a) in 2026: The Buyer's Playbook
What SBA 7(a) actually is
The SBA 7(a) program guarantees a portion of a bank loan, which lets lenders finance small-business acquisitions they would otherwise decline. For buyers, that means: 10% down payment, terms up to 10 years, and coverage up to $5M.
The buyer requirements
You will need a credit score around 680 or better, a manageable debt-to-income ratio, and a credible story for why you can run this business.
The business must qualify too
Lenders underwrite the business, not just you. They look for sustainable cash flow — a DSCR of at least 1.25x after the new loan payments — plus clean tax history and a recast that holds up.
Timeline: plan for 60–90 days
From LOI to closing, an SBA-financed deal typically takes 60–90 days. Buyers who get pre-approved before shopping close faster.
How brokers help
A good broker front-loads lender involvement, prepares a clean seller package, and shops the deal to lenders who actually do SBA. A "sold" deal that can't get financed isn't sold.
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