SBA loans for follow-on acquisitions // NAICS codes

searcher profile

March 03, 2023

by a searcher in New York, NY, USA

Hi everyone, I was trying to figure this out by looking at NAICS codes and was not having much luck. If someone acquires an online seller for baked goods, does that qualify as being in the same NAICS code as a brick & mortar baked goods store if you are looking to do 100% SBA financed follow-on acquisitions?

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commentor profile
Reply by a lender
from Trinity College Connecticut in Boston, MA, USA
I've never had to discuss NAICS codes with my SBA lenders to be able to qualify deals for 0% down for add-on acquisitions. The rule is that if you are an existing business and doing an add-on acquisition "in the same industry" then you should be able to qualify. I would expect that if you operate a bricks and mortar baked goods store that is purchasing an online baked goods business that you would qualify under the 0% down provision. Feel free to contact me at###-###-#### or redacted and once I know the details I can validate this with the 10+ SBA lenders I work with.
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Reply by a lender
from California State University, Sacramento in Seattle, WA, USA
SBA also requires you to acquire the add-on in your same existing entity to qualify for 100% financing
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