Lumos lates data on SBA business acquisition defaults

lender profile

February 18, 2025

by a lender from University of Southern California in Los Angeles, CA, USA



SBA business acquisition deals actually have a lower default rate than both loans to startups and existing businesses. This is most likely driven by the size of the average business acquisition. Still very surprising but positive data for entrepreneurship through acquisition as an investment strategy vs growing a business from scratch.
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Reply by a lender
from California State University, Sacramento in Seattle, WA, USA
Point taken, Ishan, but I do want to point out that while better than start-ups (which is not surprising) the amount of defaults for all categories are going up. Business acquisition isn't without risk.
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