Why The SBA 7(a) Loan Program Is The Best Financing Option To Acquire An Existing Business


Manage episode 262425157 series 2518941
By Ryan Smith. Discovered by Player FM and our community — copyright is owned by the publisher, not Player FM, and audio is streamed directly from their servers. Hit the Subscribe button to track updates in Player FM, or paste the feed URL into other podcast apps.

One of the most popular ways to become a business owner is to acquire an existing business. And the easiest way to qualify for financing is through the SBA 7a program.

Before I highlight the advantages of the 7a program, I’d first like to raise the point that acquiring an existing business is not always the best route to becoming a business owner. In some cases it makes better financial sense to start a new business rather than acquiring an existing one.

Here’s the test I like to apply. If you’re able to start a new business with similar or less capital requirements, and ramp up revenue and profitability within two years from opening, it’s likely best to start a new business.

If this is not the case, you can confidently focus all your attention on finding the right business to acquire.

42 episodes