How to Buy a Business with an SBA Loan (Step-by-Step Guide)

If you're thinking about buying a business, understanding SBA financing can be the difference between closing the deal or walking away.

In this episode, Shaun Thornton sits down with SBA expert Lynne Singletary to break down exactly how SBA loans work, what lenders are really looking for, and how buyers can acquire businesses with as little as 10% down.

They cover the real mechanics behind SBA 7A and 504 loans, debt service coverage, seller financing, deal structure, and the biggest mistakes that cause deals to fall apart. Whether you're a first-time buyer or a business owner planning your exit, this conversation gives you a clear, practical roadmap to navigating the financing side of acquisitions.

📌Connect or follow Shaun Thornton

👉 LinkedIn: https://www.linkedin.com/in/shaunthorntonbusinessbroker/

👉 Facebook: https://www.facebook.com/ShaunThorntonBusinessBroker/

👉 YouTube: https://www.youtube.com/@HappyBuyerHappySellerPodcast

📌Connect or follow Lynne Singletary

👉 LinkedIn: https://www.linkedin.com/in/justineassal/

🔔 Subscribe on my YouTube Channel

https://www.youtube.com/@HappyBuyerHappySellerPodcast

0:00 Introduction to Happy Buyer, Happy Seller

2:10 Lynne Singletary’s Background in SBA Lending

6:45 What Is SBA Lending and How It Works

10:30 SBA 7A vs 504 Loans Explained

16:20 How to Buy a Business with 10% Down

21:40 The Role of Pre-Qualification in Selling a Business

27:10 Goodwill vs Asset-Based Lending

32:15 What Lenders Look for in Buyers

36:50 Personal Guarantees and Collateral Explained

42:30 Interest Rates, Loan Limits, and Deal Structure

47:20 Seller Financing, Standby Notes, and SBA Rules

52:40 Why Some SBA Deals Get Declined

57:10 Timeline: From Application to Closing

1:01:00 Final Advice for Buyers and Sellers

If you're thinking about buying or selling a business, don’t wait until you're ready to act. The earlier you understand the process, the better your outcome will be. Subscribe for more real conversations on what it actually takes to close deals, and share this with someone who’s exploring their next move in business.

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