Profile 1: $750K franchise acquisition with no real estate
- Buyer: 720 credit, 10 years management experience, 10% down available
- Best fit: SBA 7(a)
- Why: 7(a) handles goodwill-heavy acquisitions; 504 does not. Microloan is too small.
Answer a few questions about your business, credit, and use of funds to see which SBA programs your situation aligns with based on published program rules.
SBA 7(a)
Max: $5M
Your inputs indicate likely eligibility. Lender-level underwriting (credit score, DSCR, collateral) is the next hurdle.
Full SBA 7(a) guide →SBA 504
Max: $5.5M
SBA 504 is specifically for commercial real estate and major equipment. Not available for working capital or acquisitions without real estate/equipment component.
Full SBA 504 guide →SBA Microloan
Max: $50K
SBA Microloan maximum is $50,000. Your loan amount exceeds the program cap.
Full SBA Microloan guide →Get the Free SBA Loan Checklist
What you need to prepare for your SBA loan application - 2-years of returns, DSCR calculation, business plan requirements, and more.
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This tool provides general eligibility guidance based on your inputs and published SBA program rules. Actual eligibility is determined by your lender and the SBA. FundBizPro is not a lender and does not guarantee any loan outcome. Full disclaimer →
The SBA backs several loan programs through participating lenders. Each has a distinct purpose, size, and eligibility profile. The checker maps your inputs to the program (or programs) most appropriate to your situation.
All-purpose vehicle for business acquisitions, working capital, equipment, and real estate. 10 percent down typical. Term up to 25 years for real estate, 10 years for everything else. Most common starting point for buyers.
Two-loan structure for major fixed assets. Bank first-position loan plus SBA-backed CDC second tranche, fixed rate on the CDC portion. Not available for working capital or goodwill-only acquisitions.
Funded through CDFI intermediary lenders, not banks. More flexible on credit and time in business. Useful for small working capital, equipment, or inventory needs.
Faster approval timeline, simpler documentation. SBA guarantee is 50 percent (lower than 7(a)\'s 75 to 85 percent), so banks underwrite more conservatively.
Three buyer profiles and the SBA programs that fit them. Run your own profile through the checker above for a personalized result.
SBA-level eligibility requires that the business is for-profit, operates in the United States, meets SBA size standards for its NAICS code, and that the borrower has exhausted or cannot access other reasonable financing. The borrower cannot be on federal probation or parole. Most SBA preferred lenders require a personal credit score of 680+, two or more years of relevant industry or management experience, and a 10 percent down payment from verified personal funds for acquisition deals.
SBA 7(a) is the all-purpose program. It works for business acquisitions, working capital, equipment, and real estate up to $5 million total. SBA 504 is specifically designed for major fixed assets above $500,000: commercial real estate and heavy equipment. 504 is structured as two loans (a bank first-position loan plus an SBA-backed CDC tranche) with fixed rates on the CDC portion. 504 is not available for working capital or business acquisitions without real estate.
SBA Microloans go up to $50,000 with an average size of about $13,000. They are funded through nonprofit intermediary lenders (CDFIs and similar mission-driven organizations), not banks. Microloans are designed for startups and very small businesses that need a small amount of working capital, equipment, or inventory. Approval requirements are more flexible than 7(a) on credit and time in business, but the maximum loan size is small.
Yes. The SBA 7(a) program is one of the most common financing vehicles for franchise acquisitions. If the franchise system is on the SBA Franchise Registry (a list of pre-approved FDDs), the underwriting is faster because the franchise system itself does not need to be reviewed during the loan process. Most major franchise systems are on the registry. New or smaller systems may not be, which adds time but does not automatically disqualify the deal.
SBA SOP 50 10 8 lists ineligible businesses including: passive real estate holding (rental property), pyramid schemes and multi-level marketing, businesses primarily engaged in lending, religious instruction businesses, gambling businesses (above a small revenue threshold), businesses owned by individuals on parole or probation, and businesses where the principals are non-US citizens without proper legal status. Some industries (cannabis, firearms manufacturing) face restrictions or full ineligibility depending on state law and specifics.
SBA preferred lenders (PLP designation) can approve in-house in 30 to 45 days from a complete application. Non-preferred SBA lenders route through the SBA for approval, which adds 2 to 4 weeks. Realistically plan for 60 to 90 days from initial application to funding for SBA 7(a) deals. SBA 504 is typically 75 to 105 days because of the CDC component. Microloans through CDFIs are often faster (30 to 60 days) but at smaller dollar amounts.