Loan Usage

Buy a Business

We have helped hundreds of companies buy a business with SBA loans

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Acquiring an existing business can be complex and costly

Acquiring an existing business is often a smart strategy for growth, whether you’re expanding current operations or entering entrepreneurship for the first time. Recently, mergers and acquisitions have surged by more than 20%, returning to pre-pandemic levels. Many small business owners are drawn to the advantages of acquiring an established customer base, leveraging operational infrastructure already in place, and benefiting from immediate cash flow. This combination of factors makes purchasing an existing business an attractive option for both experienced operators and newcomers alike.

Despite the many benefits, it’s important to understand that buying an existing business isn’t without its challenges. The purchase price can be substantial, depending on the business’s value. You will also need to plan for legal fees, potential upgrades, and ensure that you have enough working capital to maintain operations during the transition. Managing various available financing options can be tricky, especially when trying to secure affordable financing that doesn’t eat your profits.

SBA loans are an ideal solution for acquiring a business

If you’re feeling the financial strain of buying an existing business, SBA loans can offer the support you need to make it happen. SBA 7a and 504 loans are tailored to help business owners cover acquisition costs, with competitive rates and flexible terms that take some of the pressure off.

SBA 7a Loans: These loans are an excellent option for businesses of any size, providing loans up to $5 million. The loan proceeds can be used to cover many business expenses, including the purchase price, legal fees, and working capital to keep operations running smoothly. With lower down payments and longer repayment terms, SBA 7a loans help reduce the financial burden and keep your cash flow steady during the transition.
SBA 504 Loans: For acquisitions that include real estate or major equipment purchases, SBA 504 loans offer long-term, fixed-rate financing. This option can help you manage big investments without overwhelming your budget.

At First Bank of the Lake, we’re here to help guide you through the financing process. From evaluating the business to structuring the right loan package, we’ve guided many entrepreneurs through successful acquisitions. With over $1.1 billion in SBA loans provided, our experience can help you achieve your goals.

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