Glossary · The loan itself
Acquisition Financing
In short
This is a loan specifically for buying an existing business. The SBA 7(a) program is a common form of acquisition financing for small business purchases.
What it means in a deal
When you're buying a business, Acquisition Financing covers the purchase price, working capital, and sometimes closing costs. The SBA 7(a) loan is ideal because it allows for longer repayment terms and lower down payments than conventional options. Focus on how the loan structure impacts your monthly Debt Service Requirements.
Official sources
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Related terms
Common questions about Acquisition Financing
- How does seller financing structure impact the required equity injection for a business acquisition?
- How does the SBA evaluate the fair market value of goodwill in a business acquisition for financing?
- How does financing a high amount of goodwill impact the required down payment for an SBA 7(a) acquisition loan?
- What specific due diligence is required for seller financing that counts as equity injection in an SBA 7(a) acquisition?
- Is an independent business appraisal required for a 7(a) loan financing a business acquisition with a purchase price exactly $500,000?
- When is an independent business appraisal mandatory for a 7(a) loan financing a business acquisition with a purchase price over $500,000?
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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