If you’re looking for an answer to the question “Can you use a SBA loan to buy a business?”, you’ve come to the right place. The answer is yes – SBA 7(a) loans can be used for various purposes, including purchasing a business, real estate, equipment, working capital, and refinancing debt.

Can You Use an SBA Loan to Open a Franchise?

Yes, you can use an SBA loan to open a franchise. The SBA even allows franchisors to apply to be pre-approved for SBA loans and obtain an “SBA Express Delegated Authority” loan. When it comes to buying a business with an SBA 7(a) loan, you must acquire 100% of the business. This means that if you are buying out existing partners, the change must be reflected in the purchase agreement.

Can I Buy a Business Using an SBA Loan?

Yes, you can use an SBA loan to buy a business. SBA loans are acquisition loans and can be used for a range of business purposes including debt refinancing, working capital, and purchasing a business. To be eligible for an SBA loan, the business must meet certain criteria, such as:

  • Operate for profit
  • Be engaged in, or propose to do business in, the U.S. or its territories
  • Be a small business according to SBA’s size standards
  • Not be delinquent on any existing debt

Keep in mind that an SBA loan cannot be used to partially buy into a business. One owner can buy out another owner or a new owner can purchase the entire company.


In conclusion, you can use an SBA loan to buy a business. To be eligible, the business must meet certain criteria, such as operating for profit, being engaged in the U.S. or its territories, and being a small business. If you’re looking for more information about business brokers and selling a business in Atlanta, make sure to check out Atlantabusinesses.com for great resources.

What are SBA loans not allowed to be used for?

The Small Business Administration (SBA) does not guarantee loans for the purpose of covering losses that a creditor may sustain. This also applies to refinancing that would move all or part of the potential loss away from the original lender and onto the SBA.

Is it possible to purchase a business using an SBA loan?

It is possible to sell a business with the aid of an SBA loan, however it is essential to take certain steps before doing so. The most critical step is to obtain approval from the lender.

What can I use a SBA loan for?

SBA-guaranteed loans come in a variety of sizes and can be used for a variety of business needs, such as purchasing long-term assets or covering operating costs. However, some loan programs may have restrictions on how the funds are used, so it is important to speak with an SBA-approved lender before applying for a loan.

Is it possible to use an SBA loan to buy real estate?

Yes, SBA 7(a) and SBA 504 loans are available for the purchase of real estate, as well as for the construction of new structures, and for the renovation and/or enlargement of existing buildings.