Loan programs / Growth
Business Acquisition Loans
Financing to buy an existing business, a franchise resale or a partner’s share, usually through SBA 7(a) or a conventional lender.
Common programs
SBA 7(a), conventional bank loans and seller financing
Down payment
Generally at least 10% under current SBA rules
Terms
Up to 10 years, or up to 25 years when real estate is included
Qualifying
Based on the business’s cash flow and your experience
Who it’s for
A good fit if you are…
- Buyers with industry or management experience
- Partners buying out a co-owner
- Franchisees buying an existing location
- Owners acquiring a competitor or complementary business
Common uses
What the funds can cover
- Purchase price, including goodwill
- Working capital after closing
- Real estate included in the sale
- Partner buyouts
Figures above are typical ranges, not quotes. Your actual terms depend on the lender and your business.
What to expect
How it works with Benchmark
- Deal review. We review the purchase agreement, the seller’s financials and your background.
- Lender match. We present the acquisition to lenders active in that industry and deal size.
- Underwriting. The lender reviews cash flow, the business valuation and your equity injection.
- Closing. The loan closes alongside the purchase, usually with a closing attorney or escrow agent.
Documents
What you’ll typically need
Your advisor will send a checklist tailored to your request and a secure upload link. Please don’t email tax returns or IDs.
- Letter of intent or purchase agreement
- Seller’s business tax returns, last 3 years
- Seller’s interim financial statements
- Business valuation, if available
- Buyer’s resume and personal financial statement
- Buyer’s business plan and projections
- Statements showing the source of your down payment
Questions
Common questions
Can seller financing count toward my down payment?
Sometimes. Under current SBA rules, a seller note can count toward up to half of the required equity injection only if it is on full standby, with no payments, for the life of the SBA loan.
Does the seller need to stay on?
Not always, but a transition period is common and lenders like to see one. In a partial buyout, a seller who keeps any ownership generally must personally guarantee the loan for two years.
What does the lender look at most?
Whether the business’s historical cash flow can cover the new debt, and whether you have the experience to run it.
Next step
See if Business Acquisition is the right fit
One short application. An advisor will review it, recommend the best program, even if it isn’t this one, and walk you through what comes next.
Benchmark Commercial Lending arranges commercial financing through a network of third-party lenders and funders and may also lend directly. All financing is subject to approval. Rates, terms, amounts and requirements vary by program, provider and borrower qualifications and can change. Program details on this page are general information, not an offer or commitment to lend. Financing is for business purposes only.