Sba Loan To Buy A Business May 2026

: Buyers typically need a 660+ credit score (many lenders prefer 700+) and a solid personal financial history.

: Typically as little as 10% of the total project cost.

To qualify, both the buyer and the target business must meet certain standards:

: The business must demonstrate enough historical profit to cover the new debt, often measured by a Debt Service Coverage Ratio (DSCR) of 1.15 or higher .

: You must provide at least 10% equity , which can come from cash savings, certain personal loans, or "seller notes" (if they are on full standby). Common Required Documentation 7(a) loans | U.S. Small Business Administration - SBA

: The business must be "small" by SBA size standards and operate for profit in the U.S..

: Variable rates tied to the Prime rate plus a negotiated margin, subject to SBA-mandated caps. Core Eligibility Requirements