What is the SBA 7(a) Program: An Overview

Are you dreaming of becoming a business owner but don't know where to start? You're not alone! Many potential entrepreneurs face this dilemma. However, a fantastic solution can help you turn that dream into reality: the Small Business Administration's (SBA) 7(a) Loan Program. If you've never heard of it, don't worry! We'll break down this program, show you how it can be your ticket to acquiring an established cash-flowing business, and provide examples of potential deal structures.

What is Acquisition Entrepreneurship?

Before we dive into the SBA 7(a) Loan Program, let's understand what "acquisition entrepreneurship" means. Simply put, it's the art of buying an existing business rather than starting one from scratch. We at Acquisition Avenue help to educate inspiring entrepreneurs on this method of ownership. This approach has several benefits, including reduced risk, immediate cash flow, and a proven business model. After deciding to pursue this journey, you must understand the steps it takes to make it a reality. The first is knowing what funding sources are available to you. Most do not have a budget to purchase an existing business for 100% of the asking price. That is where the SBA has come in, let's explore how the SBA 7(a) Loan Program can help you fund your business acquisition.

What is the SBA 7(a) Loan Program?