quote:
If you need to go to an SBA loan I’d stop and figure out another way. The owner will typically finance the purchase over 3-5 years to reduce their tax burden. They’ll finance at prime or less. If you don’t have at least 30-35% of the cash to buy the business don’t buy it. I don’t think you need a broker. The banker, CPA or lawyer will be your source of prospects.

This. Be careful because SBA loans are usually there for those that can’t get a traditional loan, as they are generally not as great terms and rates. So ask yourself why you need that loan from the government if a private investor (banks) wont. Just don’t get yourself into trouble.

I can’t imagine buying a business I know nothing about. The biggest question is if the business is profitable why would they sell it for a reasonable deal. What outs would the owner/ seller have otherwise? As said just be leary of them fluffing their books. I’d also suggest having someone familiar with the business looking at the books, if at all possible.

2 ...

Report Post

Posted by Crawfishking88

Member since Jan 2018

84 posts

Posted on 2/2/26 at 12:37 am to baldona

I’m an SBA lender, there are some truth to your comment and some not. The traditional banks are going to be aggressive in the terms/rates and they won’t allow working capital, interest reserve etc like SBA will.

Also, SBA is not going to lend you any money if you or a partner does not have direct industry experience.

Shoot me a DM if you have questions, I don’t mind helping out my fellow Tiger entrepreneurs!

0 ...

Report Post

Posted by H2O Tiger

Delta Sky Club

Member since May 2021

7928 posts

Posted on 2/7/26 at 2:31 pm to baldona

Appreciate all of the responses, I have a good relationship with a local bank so a traditional loan is definitely in the cards, and preferred.

I guess my biggest issue is finding the proper broker, CPA, attorney, etc. After 10 years in consulting I just assume that everyone is lying to me and trying to screw me.

With some of the business owners I know now, their orgs would be too large for me to realistically purchase. Obviously these things live and die on the individual business in question.

1 ...

Report Post

Posted by dovehunter

Baton Rouge

Member since Sep 2014

1841 posts

Posted on 2/7/26 at 9:33 pm to H2O Tiger

How much can you afford assuming you put down 30?. Bank should fund you given a 30% equity stake. If you need an SBA loan or think you do you can't afford it. You'll spend more time worrying about complying than you will working.

A good CPA will Know who's ready to sell a good business. The banker will confirm the value and you need that lawyer to keep you out of trouble.

1 ...

Report Post