Business loans to buy a business
Looking to buy a business and need third party finance? The SBA program is a source of finance for buyers to use to buy a business and become an entrepreneur. The SBA loan program is sponsored by the Federal Government through the SBA or Small Business Administration. It is therefore a program backed by the US Tax payer.
For a buyer to qualify for a loan they need to meet a minimum set of criteria. This loan criteria is set by the SBA with all loan applications made through the national, state and regional banks that have been approved to handle loan applications.
An SBA loan is of great assistance to the buyer and seller of a business. However, it’s important to check the SBA loan performance data to find out which banks are lending; especially in Northern California as not all banks are willing to lend to all buyers in each industry.
Some banks prefer to not approve loans for certain industries as they are considered more risky such as restaurants while some lenders like lending for gas stations and liquor stores while others do not. The SBA loan program is not available for buyers that wish to buy a business that includes gambling or part of the sex industry. It’s also currently not available to buy a marijuana growing or dispensing business.
In addition to loans being available to buy a business, they are also available to buy a franchise. The franchise can be an existing franchise owned by a franchisee or a brand new franchise opening in a local market.
Which banks are approving SBA loans
The SBA has its head office in Washington, DC. Spread around the United States are support or regional offices that provide different services including support to the lenders in their region.
The SBA has a regional office in Citrus Heights, CA. Citrus Heights is located in Sacramento County. Because the SBA is a government agency, they also provide reports to the public on SBA lending.
Click this link to see by bank from October to December, 2015.
If you wish to buy a piece of real estate with a building you will want to get an SBA 504 loan which requires a downpayment of generally about 10%.
If you would like more information about buying a business, buying a franchise or a related service such as valuing a business, please visit my webpage Services and choose from the options available.