SBA Financing for the Purchase of an Existing Business

SBA loans are meant to finance the growth or creation of business.

- Business franchises with a track record of success are good candidates for
  an SBA loan
- Collateralization requirements are typically less stringent than for conventional
  loans, and often a lower down payment is required
- Many businesses could not be sold under any other terms, making SBA
  lending beneficial to both buyer and seller

Business Acquisition Loan Checklist

PERSONAL INFORMATION

• Last three years personal tax returns of principals who will own 20% or more of the corporate stock
• Personal financial statement of principals who will own 20% or more of the corporate stock (SBA form 413)
• Personal history on principals who will be operating the business (SBA form 912)
• Clear copy of valid Drivers License for all principals who will own 20% or more of the corporate stock

INFORMATION ON COMPANY BEING ACQUIRED

• Last three years corporate tax returns (if available)
• Current Balance Sheet and Income Statement (within 60 days)
• Business Debt Schedule (SBA form 2202)
• Two years projections for business under new ownership
• A/R and A/P report (to match most recent Balance Sheet)
• Articles of Incorporation and Corporate By-Laws