Glossary · Doing the deal
Acquisition
In short
This is simply the act of buying an existing business. For you, it means taking over an operational entity, its assets, and often its liabilities, with the goal of continuing or growing its operations.
What it means in a deal
Most SBA 7(a) loans are used for business acquisitions, either asset purchases or stock purchases. Understanding the type of acquisition is crucial as it dictates what you're buying, your liability exposure, and the due diligence required. Your lender and attorney will guide you on the best structure for your deal.
Related terms
Common questions about Acquisition
- Does the SBA 7(a) program require a minimum loan amount for business acquisitions?
- How do SBA loan rates compare to conventional bank loan rates for business acquisitions?
- How does the SBA evaluate goodwill in a business acquisition?
- How does the SBA define "management experience" for a business acquisition?
- Who typically owns the life insurance policy on a seller post-acquisition?
- What duration of post-acquisition operating expenses can working capital typically cover?
Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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