SBA expansion loans, no down payment, what is geographic region?

searcher profile

April 03, 2025

by a searcher from University of Pennsylvania - The Wharton School in Los Angeles, CA, USA

I saw that the SBA allows expansion loans with no additional down payment if it has the same NAICS code. If the company sells nationwide, what is considered the geographic region? City, State, entire US?

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commentor profile
Reply by a lender
from University of Southern California in Los Angeles, CA, USA
The SBA considers an acquisition as a business expansion without requiring an additional equity injection if the following conditions are met: 

Same NAICS Code: Both businesses operate under the identical 6-digit North American Industry Classification System (NAICS) code. 

Identical Ownership: The ownership structure of both entities is the same. 

Same Geographic Area: The businesses are located within the same geographic region.

Different lender interpret “geographic area” differently. For physical businesses, most lenders use a 200 mile rule (home services, residential moving etc). For services (accounting, consulting) or e-commerce businesses a national geographical area is fair.

I’d love to help you find the right SBA lender for this deal. We work with all the major SBA lenders. The bank pay us after your loan closes, so this is a 100% free service for you. Depending on the DSCR, I think this deal might qualify for pristine pricing (7.99% fixed). You can reach me here or directly at redacted You can also click here to schedule a meeting with me: https://cal.com/ishan-jetley-3d73m8/30min. Look forward to chatting!
commentor profile
Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA
^redacted‌ thank you for the tag. I think the answer has been pretty well provided below already. To be specific on Geographic location, again that is up for interpretation. I have seen lenders willing to stretch pretty far if the businesses are pretty remote and can easily be merged together or if both businesses sell nationally and there is a merger opportunity. If you have a location that serves the east coast and one that serves the west coast and both need to stay open, that is not going to work.

I would be happy to get on a call and help you interpret what you are looking at. You can reach me here or directly at redacted
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