One of the main benefits of SBA 7(a) loans is the low down payment requirement. The minimum cash injection required by the SBA is 10% of the business purchase price. So if you're buying a business for $1,000,000 you may only have to put $100,000 down for the acquisition. SBA lenders typically add working capital for the business and the SBA fees into the loan amount as well.

Another advantage of SBA 7(a) loans is their long repayment terms. Depending on the specific loan program, the borrower's creditworthiness, and the specifics of the business, repayment terms can range from 10 to 25 years. This can make it easier for entrepreneurs to manage their cash flow and ensure that they have the time they need to grow their business.

To qualify for an SBA 7(a) loan to buy a business, you'll need to meet the following requirements:

• A Credit Score of at least 690
• No Bankruptcies in the past 3 years
• A Clean Criminal History, or the ability to explain any misdemeanors on your record
• No current Federal Debt

If you're interested in using an SBA 7(a) loan to buy a business, the first step is to find a participating lender. I am happy to provide a referral to a few I have worked with in the past or you can find a list of SBA-approved lenders on the SBA's website. Once you've found a lender, you'll want to get a pre-approval from them.

SBA 7(a) loans are a great option for entrepreneurs looking to buy a business, but they're not the only option. Other options include traditional bank loans, seller financing, and or private loans. It's important to explore all of your options and choose the one that's best for your business.

Overall, SBA 7(a) loans can be a valuable tool for entrepreneurs looking to buy a business. They offer low low down payments, long repayment terms, and are backed by the government, which can give borrowers added peace of mind.