[Red]

Please list Direct Lenders & Investors who provide capital for the purchase of an operating businesses and the property in which they are located.



This list should serve as a complete list of direct lending sources providing capital primarily for business acquisitions with real estate involved.



**Please no brokers. Direct capital sources only. This list will help everyone on here, since this question appears consistently.

[Olderguy]

SBA 504 up to $5.5M if the building is included. SBA 7A if just the business. SBA business aquisition loan. Buyer needs experience in the industry in a management role.

You don't really want - a list of every SBA bank and non bank lender in the country?

Reach out to me...I am not going to post what you want (every lender) as you or maybe most others here may not be qualifed to handle anything like this.....you might want to check out my website as to my credentials. I have people who can do up to $1B.

SBA business acquisition loan requirements

For business acquisition loans, the SBA also requires one of the following, depending on which applies to your situation:

For new ownership. An equity injection of at least 10% of the total project costs. This includes all costs required to complete the change of ownership, regardless of the source of funds. You can do a seller carryback of 5% then only need 5% down.

For a change between existing owners.

If the 7(a) loan will finance more than 90% of the purchase price of a partner buyout, the remaining owner(s) must certify that they have been actively participating in the business operation and held the same or an increasing ownership interest in the business for at least the past 24 months. In addition, the business balance sheets for the most recently completed fiscal year and current quarter must reflect a debt-to-worth ratio of no greater than 9:1 prior to the change in ownership. If the lender cannot document that both of these requirements are met, the remaining owners must contribute cash equal to at least 10% of the purchase price of the business.

SBA loan underwriting requirements

SBA lenders, typically banks and credit unions, set their own minimum qualifications, but generally use the following criteria to evaluate loan applications:

Personal credit history. You’ll need to have good credit to qualify for an SBA loan. Lenders will usually want to see a personal credit score of 690 or higher.

Time in business. Most SBA lenders will require that you have at least two years in business. You should have an established company or be looking to buy an established company in order to qualify for a business acquisition loan.

Business finances. Lenders will want to see that you have strong business finances that show your ability to repay the loan, including annual revenue and cash flow projections. The lender will also want to see your financial history to ensure that you can responsibly manage the business acquisition while taking on new debt.

Collateral. Because business acquisitions can be complex and expensive, it’s likely that your SBA lender will ask for collateral to secure your loan. Real estate, equipment and inventory can all be used as forms of collateral.

[Yankeeman07]

Please list Direct Lenders & Investors who provide capital for the purchase of an operating businesses and the property in which they are located.



This list should serve as a complete list of direct lending sources providing capital primarily for business acquisitions with real estate involved.



**Please no brokers. Direct capital sources only. This list will help everyone on here, since this question appears consistently.

SBA Resources

https://www.sba.gov/partners/lenders/lender-reports

https://data.sba.gov/dataset/lender-activity-reports

The next step is to develop a relationship with Private Lenders, that requires effort on your part.
Anyone that has such relationship will maintain confidentiality

[Olderguy]

SBA banks vs. non bank SBA lenders

I'd like to highlight some differences in SBA loans and lenders. Most of you have experience with SBA banks. However you should start looking into non-bank lenders for your SBA loans. Non bank SBA lenders are more flexible in their underwriting.

Non-Bank Lenders

An SBA non-bank lender is a financial institution that does not accept customer deposits. Their sole reason for existing is to lend money to eligible small businesses in their community.

On the other hand, a bank is a financial institution that solicits monetary deposits from their customers and in turn loans these funds to other customers such as individuals and businesses seeking capital for a variety of reasons including starting or expanding a business.

Banks solicit deposits from their customers for two reasons: Number one to meet the Federal Reserve’s capital reserve requirements to ensure satisfactory liquidity levels and number two because deposited funds in a demand deposit account, or what is commonly referred to as a checking account, are the lowest cost of funds.

Government Regulation

Due to increased government regulatory oversight it is typically more difficult to qualify for a small business loan from a traditional bank than it is from an SBA non-bank lender.

Therefore, seeking capital from an SBA non-bank lender may be to your advantage due to the fact that non-bank lenders typically possess less stringent underwriting guidelines and do not require you to move your deposit relationship to them; which is time consuming and sometimes undesirable if you particularly like your depository institution.


A non bank SBA lender will allow you to collateralize business and personal assets. A SBA bank will need to collateralize commercial property.

Some examples I've seen and done. I got a guy in Hawaii $350,000 SBA 7A putting a third UCC on his primary residence for collateral as he leased his office and warehouse.

I saw a company get a $2M SBA loan collateralizing all of their $10M equipment in Brazil.

Typically a SBA bank might require 3 years management experience in buying a business where I've seen a non bank lender require only one year experience.

I have approvals require collateralize all of a clients vehicles. I was able to go back to the credit committee/underwriting and have them release the requirement for liens on the vehicles and maintain the same approval.

I have done a lot of these loans and many brokers have reached out to me with their frustration doing SBA loans. Yes you do need to do some financial analysis when reviewing the package. And it helps to have the merchant connect you with their accountant or bookkeeper for documentation needed.