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Looking for info on aquisition loans?

I am getting serious about purchasing an existing business. Before I make an offer I wanted to line up financing. I have enough cash on hand to make a down payment of about 10%. Is this enough to qualify for SBA financing? The purchase price for one location is 330K. The seller also has another location that I am interested and is willing to hold a note for 20%. Is that allowed with SBA financing being that I do not have enough cash to put a down payment on the second location? Your help is appreciated!

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Answers (1)
Andrew Rogerson
Rogerson Business Services
Certified Business Broker
Sacramento County, CA
Premium Broker

SBA loans at the moment have become a little easier than in the last 16 months or so but I don't think you have enough to get the job done. Depending on your management experience, credit report and credit score you'll have to encourage the seller to carry more of a note. SBA are looking for about 30% between seller and buyer and they will finance 70% if you have the right package. Get prequalified for an SBA loan so you present strongly to the seller and encourage them to carry a higher note.

Jan 18, 2010

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