How to find an SBA lender for a business acquisition

This is general information from SBA’s public data and SBA’s own published rules, not financial or legal advice. Lenders set their own credit terms within SBA rules; ask each lender directly.

Start with the basics: you apply through a lender

SBA does not make 7(a) loans itself. You apply through a participating lender, and SBA lists changes of ownership (complete or partial) as an eligible use of 7(a) loans, with a maximum loan amount of $5 million. Source: SBA: 7(a) loans.

SBA’s free Lender Match tool shares your request with participating lenders (SBA says more than 800 take part) and prepares a summary of interested lenders two business days after you submit it. SBA notes a match is not guaranteed. Source: SBA: Lender Match.

Our data adds what SBA’s tools do not show: which lenders actually closed acquisition loans, where, for which industries and at which deal sizes. Use both.

Step 1: see who actually lends on acquisitions

Acquisition lending is concentrated. The 10 most active lenders made 35% of FY2024 to FY2026 acquisition loans. Of 1,054 lenders, 262 made 10 or more such loans (together 89% of the total), while 659 made fewer than five. 27 lenders with their own page lent in 25 or more states, so many active lenders work nationally, not just near their headquarters.

Step 2: narrow by the state where the business is

Every state with 10+ loans has its own page ranking the lenders that financed businesses there. In the median state, the top five lenders made 44% of acquisition loans. In 20 of 52 states, the busiest lender locally is not one of the 10 most active nationally, so check your state page as well as the national list.

Step 3: match your deal size and industry

The median acquisition loan was $710K, and 39% were $1 million or more. Lenders differ a lot by size: some do mostly small deals, others mostly large ones. Each lender page shows its deal-size mix and top industries; the deal-size and industry pages rank lenders within each segment.

Step 4: know the SBA rules lenders must follow

SBA’s lender rulebook, SOP 50 10 8.1, has a full appendix on changes of ownership (Appendix 15, effective October 1, 2026). Some of the rules that most affect a buyer, quoted or summarized from that appendix (SBA: SOP 50 10 8.1, Appendix 15 (effective Oct 1, 2026)):

• Equity: the minimum equity injection is 10% for an Initial Acquisition, and for an Initial Acquisition it cannot be reduced or eliminated (p. 353).
• Seller financing as equity: seller debt that is on full standby (no payments of principal or interest for the term of the 7(a) loan) may count as equity, but limited sources such as this may provide no more than half of the required equity injection (p. 354).
• Valuation: the business valuation must come from an independent Qualified Source and be requested by and prepared for the lender. If the price exceeds the valuation, the difference must be made up by equity (p. 351).
• Quality of Earnings: for Initial Acquisition and Business Expansion deals with a purchase price of $3 million or more, the lender must also obtain a Quality of Earnings report (pp. 351–352).
• Cash flow: the minimum debt service coverage ratio is 1.25:1 for an Initial Acquisition (1.15:1 for a Business Expansion) (p. 356).
• Term: change-of-ownership loans must not have an amortization over 10 years; deals that include real estate can be structured as separate loans or blended (p. 350).
• The seller: in an Initial Acquisition or Business Expansion the seller generally may not stay as an officer, director, stockholder or employee, but may contract as a consultant for up to 24 months. Seller earnouts are prohibited (p. 343).
• Loan type: 7(a) Small loans may not be used for changes of ownership (p. 342).

In our data, 2,043 acquisition loans were $3 million or more. Loan size is not the same as purchase price, so ask your lender early whether your deal needs a Quality of Earnings report.

Step 5: contact several lenders and compare

Shortlist lenders that are active in your state, your deal size and your industry, then contact them directly. SBA suggests asking lenders about interest rates, minimum credit score, cash flow requirements and prepayment penalties (SBA: Lender Match). SBA also recommends doing due diligence on the business and getting help from professionals such as an attorney and an accountant (SBA: Buy an existing business or franchise).

What this data cannot tell you

Our rankings count approved SBA 7(a) change-of-ownership loans by lender. They do not show interest rates, fees, declined applications, or how a lender will view your deal. A lender’s past volume is not a promise it will lend to you. BuyoutLenders does not take referral fees from lenders.

Sources

• SBA: 7(a) loans
• SBA: Lender Match
• SBA: SOP 50 10 8.1, Appendix 15 (effective Oct 1, 2026)
• SBA: Buy an existing business or franchise
• Loan data: SBA 7(a) FOIA loan-level data, latest file as of September 30, 2026. See how we count.