Follow-on SBA loans

July 07, 2025

by a searcher from Harvard University - Harvard Business School in Cambridge, MA, USA

Does anyone know the requirements for a follow on SBA loans after the first acquisition? Can it be in any NAICS code and are there any personal requirements to qualify for a follow-on?

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Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA

If you still have availability in your initial $5 million guarantee, you can do additional acquisitions in the existing NAICS code. However, if you are looking to access additional SBA 7A funding, you need to buy in a different NAICS code. There are no hard requirements. However, lenders will be concerned about your ability to manage multiple businesses and will want to understand how you will manage your time between them, especially if in different markets. Also, if you are doing another acquisition quickly after your first, that could be a concern as well for lenders. I am happy to discuss options as we have done a couple of these deals now. You can reach me here or directly at redacted

Reply by an intermediary
from Indiana University at Bloomington in Carmel, IN, USA

Thanks ^redacted‌ for the tag. Good points from Brad, my understanding is if it is in the same NAISC code and contiguous to your existing company, then you can qualify for $0 DP. If not contiguous or not identical NAISC code, then the 10% min DP is required. Contiguous can be a little gray. But most bankers wouldn't bank a new owner trying to grow in a nonrelated field, you would need a minimum 2 years and having a good management team. Growth through acquisition is a great way to grow, but it is not an easy thing to do.

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