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If you're thinking about buying a business and planning to use an SBA 7(a) loan, your journey starts long before you submit an application. Preparing correctly—and early—can dramatically increase your chances of approval and speed up the funding process.
In this article, we’ll break down exactly what it means to “get ready to get ready” for SBA financing, how to properly evaluate deals, and what paperwork you should have lined up before calling a lender.
Why Business Acquisition is Trending (and Why SBA Loans Matter)
The phrase “business acquisition” has become a buzzword. People are realizing they can skip the painful startup phase and buy into proven businesses. But unless you’re sitting on a mountain of cash, you’ll likely need financing—and SBA 7(a) loans offer the best leverage available:
- Up to 90% financing
- 10-year loan terms
- Low down payments
- Flexible deal structuring (can include seller financing)
Yet many aspiring buyers fail to move forward simply because they’re not prepared.
Most Common Mistake? Not Having the Seller’s Financials
The #1 step in determining if a deal can be financed is collecting the business’s financial statements. The SBA and its partner lenders underwrite based on cash flow, not vibes.
Here’s what you’ll need from the seller:
- 3 years of tax returns (2021, 2022, 2023)
- Year-end profit and loss (P&L) for 2024
- Balance sheet
You can’t evaluate a business without this information. Don’t waste time asking, “What do you think of this P&L?” if you don’t have the tax returns. It’s a non-starter.
How Serious Buyers Set Themselves Apart
According to Beau Eckstein, many people book calls asking general questions but never actually pursue a business. The serious buyers?
- Study SBA financing deeply
- Watch YouTube tutorials and read content like this
- Gather complete paperwork before reaching out
- Move quickly when an opportunity arises
One of Beau’s recent clients went directly to a bank, only to be told his deal didn’t qualify. But because he had his documentation in order and understood the structure, Beau was able to get him a Letter of Intent (LOI) from another lender quickly.
Must-Have Documents Before You Apply
If you’re planning to finance your acquisition with SBA funding, gather this basic documentation in advance:
From the business you want to buy:
- 3 years of business tax returns
- Year-end P&L and balance sheet
From you, the buyer:
- Personal tax returns (last 3 years)
- Resume
- Form 413 (Personal Financial Statement)
- Any business tax returns for other companies you own
- Debt schedule (if applicable)
📌 Tip: Store your documents securely in cloud storage so you can update and share them quickly when needed.
Set Up Your “Buy Box”
Before you even begin your search, you should define your buy box—your criteria for the types of businesses you’re targeting. This helps you move with confidence when a good deal hits the market.
- Industry preferences
- Target geographic area
- Revenue & cash flow thresholds
- Owner involvement requirements
Being clear about your buy box makes it easier to evaluate opportunities and move fast when the right business comes along.
From LOI to Loan Commitment
Once you’ve got a solid deal and your documents are in, the next steps include:
- Get an LOI from a lender
- Submit the full package for loan commitment
- Pay a retainer for third-party reports
- Work with the lender’s processor to finalize the loan
The timeline varies, but deals can typically close in 60–90 days if you’re organized.
Final Thoughts: Be a Student of the SBA Game
If you’re serious about buying a business, start learning now. Watch content, read blogs, talk to experts. Become a student of the process.
🗓️ Need help with your SBA loan strategy?
Book a free strategy session with Beau at BookWithBeau.com
Bonus Resource: Scale Smarter with AI & VAs
Grab your free copy of The Biz Scaling Playbook—a resource that shows you how to grow efficiently with virtual assistants and AI tools. Ideal for business buyers and owners alike.
Subscribe to Beau’s YouTube channel for the latest tips on SBA lending, franchise funding, business acquisitions, and more.