Seeking SBA Express Loan to acquire a portion of a business

January 18, 2025

by a searcher from Columbia University in New York, NY, USA

Does anyone know of lenders that provide SBA Express loans up to $500k to acquire a portion of a business?

I’m in the process of acquiring a landscaping business in the northeastern US. They have a 20-year history with their clients. $930k in revenue, and $280k EBITDA.

They’re looking to close in a short timeframe, which is why I think the SBA Express loan would be best option. If anyone knows of any other options I could use, please, feel free to let me know.

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

Unfortunately Ishan is not correct here. Sorry Ishan. There are two programs called the SBA 7(A) Small loan program and the SBA Express loan program. Both are for loan sizes under $500,000. However, your lender has to have a special designation to do SBA Express loans, and not all lenders have that additional designation. Historically you could not use an SBA Express loan for a change of ownership transaction / business purchase. However, you can now do so. The issue you will run into here is that most SBA lenders do not like to do business acquisition loans using the Express Loan program due to the time still involved on their end in underwriting them. And there is a minimal level of documentation required for business acquisition loans, even when using the Express product that exceeds that required for more common express loans, like working capital loans and debt refinances. Because of that, it can be very hard to find a lender to do a business acquisition under the SBA Express program. Although available, I would not plan on using this and I would still plan on at least 45 to 60 days to close.

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

There is no SBA express loan. Maybe you’re referring to the 7a small loan program designed for operating businesses. The small loan or the “express loan” cannot be used for business acquisitions. The way to do business acquisitions is a 7a traditional loan. You can work with lenders that can close fast. Fastest I’ve seen is 44 days from term sheet signing. 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!

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