For buyers
How big a business can you buy?
Enter what you have available. We will show you the purchase price range an SBA 7(a) lender would likely support, the equity you need to bring, and the cash flow the business has to produce to carry the debt.
At this price you would need a business producing at least $514,579 in seller discretionary earnings, which implies paying no more than about 4.5x SDE. If you cannot find that, lower the price or bring more equity.
If the lender requires the full 10% in cash, the purchase price drops to about $1,162,500.
How the math works
An SBA 7(a) change-of-ownership loan can fund up to 90% of the total project cost (purchase price plus working capital, closing costs, and the SBA guarantee fee). The remaining 10% is the equity injection under SOP 50 10 8.1, in force since October 1, 2026. Up to half of it can be a seller note on full standby for the life of the loan, so the structure we close most often is 5% cash from the buyer and 5% standby note from the seller: a buyer with $50,000 to $100,000 in cash can often support a project around $1,000,000, provided the business's historical cash flow covers the debt.
That second test is the one that actually sets the ceiling. SOP 50 10 8.1 requires 1.25x coverage on historical earnings, not projections, and caps the business portion of the loan at a 10-year amortization. At current rates (prime, 7.00% as of September 2026, plus 2 to 3 points over 10 years), every $1,000,000 borrowed costs roughly $13,000 to $14,000 a month. The business needs to produce that plus a living wage for you plus a cushion. That is why we show the minimum cash flow alongside the purchase price.
The calculator uses conservative assumptions: 10-year amortization, a rate of prime plus 2.75%, a 1.25x debt service coverage requirement, and a $75,000 owner salary. Every deal now also requires an independent business valuation, and deals of $3M or more require a quality of earnings report. Real deals vary. Treat the output as a starting range for the conversation with a lender, not a pre-approval.
Frequently asked questions
How much do I need to put down on an SBA 7(a) acquisition?+
SOP 50 10 8.1 sets the equity injection at 10% of project cost on a complete change of ownership, and up to half of it can be a seller note on full standby for the life of the loan. The structure we close most often is 5% cash from the buyer and 5% standby note from the seller. Some lenders still ask for the full 10% in cash on thinner deals.
What is the maximum SBA 7(a) loan?+
$5 million. Larger deals use a 7(a) loan plus conventional or private credit, or a larger seller note.
What does the lender look at besides my down payment?+
Debt service coverage. The SOP requires the business's historical cash flow, after a reasonable owner salary, to cover annual loan payments at least 1.25 times, and projections cannot be used to get there. Lenders also look at your industry experience, credit, outside income, and post-close liquidity, and every acquisition needs an independent valuation from a qualified source.
Can I use retirement funds?+
Yes. A ROBS structure lets you roll a 401(k) or IRA into the business without an early withdrawal penalty. It has setup costs and ongoing compliance, so it suits larger balances.
Is this a loan approval?+
No. It is an estimate built on standard SBA 7(a) terms. Actual terms depend on the lender, the business, and your profile. We walk Acquisition Launch clients through real lender conversations.