Whether you’re a business owner looking to add another business to your portfolio or an entrepreneur seeking new opportunities, a business acquisition loan is a great way to acquire a business. Business acquisition loans can also be used to refinance a business or buy out a partner. These types of loans are typically structured to include working capital or new equipment and, in most cases, use commercial real estate as collateral.
Our SBA loan experience can prove to be invaluable when acquiring a business. The SBA’s 7(a) loan program is one of the most common avenues of business acquisition and can offer up to $5 million in funds for working capital, equipment purchases, real estate purchases, and startup costs.
Our business acquisition features include:
- Up to 75-80% financing for new buyers (10% seller note on standby)
- Up to 90% financing on real estate component
- Up to 100% financing for partnership buyout
- 10-year term, longer if real estate is included in the transaction
- Up to $2 million in Goodwill
- Can include working capital or new equipment
- Can include new equipment
- New buyer MUST have direct or related experience
- No bankruptcies (7 years); no judgments (5 years)
- 1.25x historic debt service
- Positive trends, no significant concentrations
- Up to 85% financing available on franchise acquisitions
Contact a First National Bank Small Business Finance representative for more information on funding for your business: 1-855-935-6722