The BizBuySell Small Business Community

  • Get Expert Advice

  •  • Find Local Service Professionals

  •  • Share Your Experiences

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!

No User Photo

Answer This Question

max 5000 characters

Web Reference (optional)

e.g., ""

Review Community Guidelines

Help keep our Community clean and on topic. The BizBuySell Community is a place where you can discuss your questions, concerns and knowledge with others you can trust. It is not OK to use this forum to solicit others for personal or financial gain, or to rant about personal issues. It's all in the guidelines.

Submit Your Answer
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

Start a Discussion