Glossary · Doing the deal
Private sale
In short
A sale of assets or a business negotiated directly between a seller and a specific buyer, without an open bidding process. This is common for small business acquisitions.
What it means in a deal
Most small business acquisitions, including those financed by an SBA 7(a) loan, are private sales. You'll negotiate terms directly with the seller. Your due diligence and legal agreements are crucial here to protect your interests.
Related terms
Common questions about Private sale
- When does ownership by a private equity fund trigger affiliation for SBA size standard purposes?
- Can a bridge loan from a private lender count towards the buyer's required equity injection?
- Can funds from a private equity firm count as equity injection for an SBA 7(a) loan?
- Under what conditions does ownership by a private equity fund trigger affiliation for SBA size standard purposes?
- Can a private investor provide a loan that counts as equity injection for an SBA 7(a) loan?
- Can a subordinated loan from a private third-party investor count as equity injection for an SBA 7(a) loan?
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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