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How to finance buying a business

Short answer: Most small-business acquisitions are financed with an SBA 7(a) loan, typically requiring around a 10% minimum equity injection, often with seller financing layered in. Get pre-qualified before you offer. (Verify current SBA rules — this isn't a loan offer.)

Most people don't buy a business with cash — they finance it, and in the US the most common tool for a small-business acquisition is an SBA 7(a) loan. Understanding how it works (and getting pre-qualified early) is what lets you move quickly and credibly when the right business appears.

How SBA acquisition financing generally works

The SBA 7(a) program lets a bank lend to you with a government guarantee, which makes lenders willing to finance a business purchase they otherwise wouldn't. General features (confirm current rules — SBA terms change, and this is not a loan offer or financial advice):

The smart sequence

Get pre-qualified with an SBA lender before you're deep into a specific deal. It tells you your real budget, signals to sellers and brokers that you're serious, and prevents the heartbreak of agreeing to a price you can't finance. Many experienced buyers build a relationship with two or three SBA-preferred lenders early.

Seller financing and other pieces

Deals are often a stack: an SBA loan for most of it, your equity injection, and sometimes seller financing — the seller carries a note for part of the price, paid from the business's future cash flow. Seller financing also signals the seller believes the business will keep performing, which is reassuring. Earn-outs and working-capital adjustments can also feature.

Talk to a lender

Every business and borrower is different, and SBA rules and caps change. Use the form below and we'll connect you with SBA-experienced lenders who finance acquisitions in your range — free, and we're not a lender ourselves.

SBA 7(a) lenders to know

These active SBA 7(a) lenders are compiled from public sources and unverified, listed for your research — not an endorsement, ranking, or loan offer. Confirm current SBA programs, rates, and eligibility directly with each lender. “SBA Preferred Lender” reflects each lender’s own public statement.

Live Oak Bank

SBA Preferred Lender

Nation's top SBA 7(a) lender by volume; participates in the SBA Preferred Lender Program (PLP).

SBA loan page →

Huntington National Bank

Nation's largest originator by volume of SBA 7(a) loans for seven consecutive years.

SBA loan page →

NewtekOne (Newtek Small Business Finance)

SBA Preferred Lender

One of the largest non-bank SBA 7(a) lenders nationally; ranked among the top SBA 7(a) lenders by volume.

SBA loan page →

Byline Bank

SBA Preferred Lender

Top-ranked national SBA 7(a) lender by volume.

SBA loan page →

Celtic Bank

SBA Preferred Lender

Top-five SBA Preferred Lender; national SBA 7(a) lender for business acquisitions.

SBA loan page →

Ready Capital (ReadyCap Lending)

SBA Preferred Lender

Non-bank SBA Preferred Lender that lends in all 50 states.

SBA loan page →

First Internet Bank

SBA Preferred Lender

Online-only national SBA 7(a) lender; holds SBA Preferred Lender status.

SBA loan page →

Pinnacle Financial Partners

Multi-state SBA 7(a) lender in the Southeast, ranked among the top SBA 7(a) lenders by volume.

SBA loan page →

U.S. Bank

SBA Preferred Lender

National SBA Preferred Lender.

SBA loan page →

TD Bank

SBA Preferred Lender

SBA Preferred Lender; ranks #1 in SBA lending in its Maine-to-Florida East Coast footprint.

SBA loan page →

Wells Fargo

SBA Preferred Lender

National SBA-preferred lender offering SBA 7(a) and 504 loans.

SBA loan page →

Stearns Bank

SBA Preferred Lender

Preferred SBA lender that sources, approves, and funds SBA loans nationwide.

SBA loan page →

Get matched with buy-side brokers and SBA lenders
Free, no obligation. We connect you with brokers and lenders that fit what you're trying to buy — we're not a broker or a lender ourselves.

Frequently asked questions

How do I finance buying a business?

Most US small-business acquisitions use an SBA 7(a) loan, often combined with your equity injection and sometimes seller financing. Get pre-qualified with an SBA lender before you make an offer.

How much down payment do I need to buy a business?

The SBA typically requires a minimum equity injection — commonly around 10% for an acquisition — though lenders may require more, and part can sometimes come from seller financing on standby. Verify current SBA rules with a lender.

What is an SBA 7(a) loan?

A bank loan backed by an SBA guarantee that makes lenders willing to finance business acquisitions, commonly up to a published maximum (often cited around $5M — verify the current cap) with terms up to about 10 years.

BizBuyGuide is independent. We are not a business broker or a lender, we do not sell businesses, and we do not take a commission on any deal. Our guidance and rankings are never influenced by payment. Where a listing is sponsored, it is clearly labeled and it never changes our editorial assessment.