How SBA Loans Help Buyers & Sellers, Business Brokerage Guide

Brought to you by Cox Business Brokers AZ | 480-235-7911

If you’re looking to purchase an existing business, one of the most effective financing options available today is an SBA loan. Backed by the U.S. Small Business Administration, these loans offer flexibility, favorable terms, and

access to capital that many entrepreneurs wouldn’t otherwise have.

At Cox Business Brokers AZ, we help buyers understand their options and guide them through the process of acquiring a business—including financing

with SBA loans.

What Is an SBA Loan?

An SBA loan is a business loan made by a lender and partially guaranteed by the federal government through the Small Business Administration. It’s designed to reduce lender risk and open the door for more small business acquisitions and expansions.

Funds from SBA loans can be used to:

• Buy an existing business

• Expand current operations

• Renovate facilities

• Purchase equipment or inventory

Loan amounts typically range from $500 up to $5 million, depending on qualifications.

Why Buyers Choose SBA Loans

Compared to traditional bank financing, SBA loans come with several major advantages for business buyers:

✅ Easier Qualification

Because the SBA guarantees a large portion of the loan—up to 85% on loans under $150,000 and 75% on loans over $150,000—lenders are more likely to approve applications from qualified buyers, even those with less-than-perfect credit or lower collateral.

✅ Longer Repayment Periods

SBA loans often come with 10-year terms (or longer for real estate), easing pressure on your monthly cash flow.

✅ Access to Larger Loan Amounts

Qualified buyers can finance anywhere from $500 to $5 million, allowing you to fund not only the purchase but also working capital and improvements.

✅ Capped Interest Rates

Interest rates on SBA loans are capped, making borrowing costs more predictable and often more competitive than other commercial loan options.

✅ Additional Resources

Some SBA programs include access to small business counseling and planning tools to help new owners succeed.

SBA Loan Types to Know About

The SBA works with various lenders to offer different loan programs based on your business goals. Here are the most common types:

1. SBA 7(a) Loan

This is the most widely used SBA loan for acquiring a business. With 7(a) loans, buyers can fund purchases, working capital, and even some real estate. Loan amounts can go up to $500,000 or more, depending on the lender.

2. SBA 504 Loan

Great for long-term fixed-rate financing, especially for purchasing commercial real estate or large equipment. These loans are issued through Certified Development Companies (CDCs) and offer attractive terms for expanding business assets.

3. SBA Microloan

If you only need a smaller amount, microloans offer funding up to $50,000. These are issued by nonprofit community-based lenders and are ideal for startups or smaller acquisitions.

4. Export Loans

Through the SBA’s Office of International Trade, exporters can access specialized loans to support global business expansion—especially useful when traditional banks view these ventures as too risky.

Is SBA Financing Right for You?

If you're considering buying a business but don’t want to tie up all your capital—or need more favorable loan terms—SBA financing could be the ideal solution.

At Cox Business Brokers AZ, our experienced business brokerage professionals work closely with buyers and lenders to align financing with your acquisition goals. We help identify businesses that qualify for SBA loans and offer expert guidance every step of the way.

📞 Call us today at 480-235-7911 to schedule a confidential conversation and explore how SBA financing can work for your next business opportunity.