EIDL loan and a good deal

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September 12, 2025

by a searcher from Pepperdine University - Graziadio School of Business and Management in Denver, CO, USA

I have a deal under LOI, and like every deal, it’s unique. There’s an opportunity to assume an existing EIDL loan: $500k at 3.75% over 30 years, with a personal guarantee. (the 500k would be paid to the seller.) If I can assume it, this would significantly reduce my SBA 7a needs to around $300k (assuming I go SBA vs. investor capital). My research suggests it’s possible to assume the EIDL loan, though it sounds like a grind with lots of red tape. Has anyone here successfully assumed an EIDL loan in an acquisition? Any lessons learned or pitfalls I should be aware of?
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commentor profile
Reply by a searcher
from Sophia University in The Woodlands, TX, USA
Hey Chad, Congrat's on the LOI! Proud to say I did (finally) assume an EIDL loan through the acquisition process, despite what everyone (including the SBA) told me- but at 2.75% felt it was definitely worth the fight! Once I got to the right person, it was fairly straightforward – they even have a specific form to request assumption of a loan, so I can’t be the only one who’s done it. I’d start there. Mine was an asset purchase, and I was told it would have been even easier if it were a stock purchase. Sellers council required me to also sign an indemnity clause stating I'd assume liability if the SBA came after them for anything in the future. Not sure what else may apply in your case since you’re at the $500k level (mine was $140k). That’s about all I can think of for now. Feel free to email me at redacted if I can be of any further help.
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Reply by an intermediary
from Harvard University in Dallas, TX, USA
We assumed an EIDL in February 2025 when acquiring a company. The SBA was in chaos at the time due to DOGE cuts but we managed to get it done. SBA wants a partial paydown of the EIDL. We negotiated them down to a single digit percentage but I understand from others that they have toughened up their stance on this. They would not subordinate to any other debt however, which caused some issues as we were going to have a bank term loan as well. They wanted us to pay down the EIDL in an amount equal to 50% of the term loan, which would have left a hole in the cap stack. It is worth trying.
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