Business Acquisition Financing. SBA Loans to Buy a Business in California
Acquiring an existing business is one of the most impactful investments you can make, and one of the most complex to finance. At Commercial Capital Partners, we specialize in business acquisition loans throughout California, helping buyers secure the capital they need to purchase businesses, franchises, and business-real estate combinations with competitive terms and expert guidance.
SBA 7(a) Loans for Business Acquisitions
The SBA 7(a) loan is the go-to program for financing business acquisitions. It allows qualified buyers to purchase an existing business with as little as 10% down, with repayment terms of up to 10 years (or up to 25 years when real estate is included). Loan amounts go up to $5 million, covering most small and mid-market business transactions.
The SBA 7(a) program can finance: the purchase price of the business (goodwill, inventory, equipment, and accounts receivable), associated real estate if the business owns its property, working capital to fund operations after closing, and costs related to the transition and buildout.
What Types of Businesses Can Be Financed?
- Established small businesses across all industries
- Franchise acquisitions (SBA-approved franchise brands)
- Medical, dental, and healthcare practices
- Gas stations and petroleum retail operations
- Restaurants and food service businesses
- Manufacturing and industrial companies
- Service businesses and professional firms
- Retail and e-commerce businesses
Business Acquisition Loan Requirements
Lenders evaluate both the buyer and the business being acquired. Key factors include the buyer’s management experience and industry background, the target business’s historical cash flow and profitability (typically 2–3 years of tax returns and financials), a business valuation or purchase agreement, and a transition plan demonstrating the buyer’s ability to maintain operations post-closing.
SBA lenders also require a personal guarantee from owners with 20% or more ownership, and collateral to the extent available, though insufficient collateral alone will not disqualify a strong loan request.
Partner Buyouts
In addition to third-party acquisitions, SBA 7(a) loans can finance partner buyouts, allowing one owner to purchase another owner’s interest in the business. This is a commonly overlooked use of the SBA 7(a) program and a valuable tool for business succession planning.
Work With a Business Acquisition Specialist
Commercial Capital Partners has helped buyers across California structure and close business acquisition loans through SBA and conventional programs. We work with you from the initial review of the target business through lender placement, underwriting, and closing. Our deep lender relationships allow us to match each transaction with the right program and the most competitive terms.
Call (909) 721-5915 or contact us to discuss your business acquisition financing needs. Serving the Inland Empire, Los Angeles, and all of California.
