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I would like to buy an existing business, I am young and I would like some advice on the loan process. Anyone?

Have found a few businesses I would be interested in acquiring, looking for some advice on getting a loan to buy an established business, can anyone help? What lenders should I look into, etc?

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Answers (7)
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This directly from the SBA website :
Government grants are funded by your tax dollars and, therefore, require very stringent compliance and reporting measures to ensure the money is well spent. As you can imagine, grants are not given away indiscriminately.
Grants from the Federal government are authorized and appropriated through bills passed by Congress and signed by the President. The grant authority varies widely among agencies. SBA has authority to make grants to non-profit and educational organizations in many of its counseling and training programs, but does not have authority to make grants to small businesses. The announcements for the counseling and training grants will appear on If Congress authorizes Specific Initiative Grants, organizations receiving such grants will receive individual notifications.
Some business grants are available through state and local programs, nonprofit organizations and other groups. For example, some states provide grants for expanding child care centers; creating energy efficient technology; and developing marketing campaigns for tourism. These grants are not necessarily free money, and usually require the recipient to match funds or combine the grant with other forms of financing such as a loan. The amount of the grant money available varies with each business and each grantor.
If you are not one of these specialized business, both federal and state government agencies provide financial assistance programs that help small business owners obtain loans and venture capital financing from commercial lenders.
Anything is possible but the reality is most people won't be lucky enough to get these. One woman who posts here named Rebecca has been trying to get financing for years for various biz's with no luck. I hope she gets it and I hope someone here helps her. She has the ambition and the will..... all she needs is more money. Maybe you can help.

Apr 4, 2011
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Why are you surprised at the answers? He stated that he was looking for 100% financing which is very rare. My paragraph about my troubles getting a loan in 2006 is 100% true. You make it sound so easy that everybody would own their own biz. So your guy had 20k down and got a grant? Cool, but a completely different scenario than what the threadstarter proposed.
If you give me a recap of how you got a young person to get 100% financing to buy a successful biz I willl be impressed but I will still stand by my assertion that that is extrememly rare and you shouldn't count on it. I could win the powerball on Wednesday also..... but I am not counting on it.

Apr 4, 2011
Michalle Farrakhan
Keller Williams Chattahoochee North
"The Best Choice in Real Estate"
Gwinnett County, GA

Wow, I am surprised at the anwers here. I helped a young man buy a two business combo First Business at 200K and Second at 25K involving two leases. Firt Time Business Buyer. Referred Him to SBA Lender. He received a grant. His downpayment was less than 10% because he obtained a grant for more than 10% to cover his first 3 months proceeds involving payroll and expenses to employees. He came to the table with $20k only covering the 10% downpayment and the lease rent for the first month. I made sure the Lender did not charge him outrageous fees. The Buyer Received 10 day training before closing and 30 day observation of the Business to make sure the Business was not failing. Observation and Documentation of Operating Expenses and Profits.The loan took 60 days to close. If anyone in the Georgia Area Needs Help. I will be happy to help them purchase a business for the first time. Michalle Farrakhan -Realtor, Keller Williams Realty 678-542-1901

Apr 2, 2011
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I guess John has a way with words. He's right, you must have something besides an "I would like to buy" feeling. If someone did offer you 100% financing than it probably a disaster waiting for an idiot to come along!
Do what most rookies do, get 50% percent owner financing, find a sucker or two for the other 50%. Then after a few months decide it is to hard, can't work and just quit. Then again, maybe your the 1 in 15 or so that has what it takes.
John's right you know, if you work 80 to 100 hours a week for a year or two, mostly without pay, then you should be somewhat ready for buying a business. At least you should have the working hard part down pat, time will tell if you can figure out how to work smart too!
Trust me, the advice you are getting is real and actually very gentle, compared to the reality of business ownership.

Jan 31, 2011
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Why would anyone finance you 100 percent? I own a restaurant and would only finance 100% to a close family member. To find a money partner you need the three F's. Family, Friends and Fools. If you can't find a financial partner ( and be careful what you wish for--- the idea of a partner sickens me) you have to do what I did- work 80 hours a week for years and come up with the money yourself.
Just to give you an idea of hard it is to find a loan (at least a loaan that doesn't cost twenty points, a 5k upfront fee and high interest,) in 2006 when lending was great I could not get a loan to buy a biz. I had decades of experience, an 820 credit score and a little home equity. I ended up coming up with the money myself with cash, a 100k personal loan and maxed a couple of credit cards.
The American Dream isn't free, unfortunately.

Jan 30, 2011
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I have yet to find an owner who would finance the entire transaction, some i have seen will finance up to 50% of the transaction, which would still leave the other half, so a loan or some other type of financing would be necessary

Jan 30, 2011
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Owner financing will be probably your best bet. You may find that the banks will only loan to you if you can prove you don't need it!!

Jan 30, 2011