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SBA 7(a) Loan Optimization

10% down on $5M business acquisitions; 10-yr terms.

Overview

SBA 7(a) finances business acquisitions up to $5M with 10% down (buyer), 90% financed at Prime + 2.75%, 10-yr amortization, no balloon. Seller can carry 5% on standby. Personal guarantee required; SBA guarantees 75–85% to lender.

Best fit
Business acquirers <$5MFranchise buyersFirst-time buyers
Estimated impact
Buy $5M business with $500K down + seller carry

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