In this episode of Before You Buy or Sell a Business, we're sharing a conversation originally recorded for A Coleman Conversation, where Jared Johnson joins the show to discuss his career in SBA lending, the growth of entrepreneurship through acquisition, and what it takes to build a successful career financing business acquisitions. Jared shares how he entered the SBA lending industry while finishing school, eventually moving into SBA 7(a) lending and discovering business acquisitions around 2010 andredactedOver the years, he's developed a specialty in financing acquisitions for buyers transitioning from professional careers into business ownership. The conversation explores how the business acquisition market has evolved and why Jared believes today's buyers are bringing more sophisticated approaches to evaluating companies. He discusses the importance of liquidity, debt service coverage, transferable management experience, and preparing buyers for the challenges that can arise after closing. Jared also explains why he approaches his role as more than simply getting loans approved, focusing instead on helping borrowers structure acquisitions that position them for long-term success. Jared also talks about his experience at First Internet Bank, where he's spent six years building his business acquisition lending practice. He discusses the importance of having a lender that understands acquisitions, building an experienced support team, and developing educational resources that help borrowers navigate the financing process. He also shares how consistency, work ethic, and years of experience have contributed to his career. The discussion turns to the possibility of increasing SBA loan limits to $10 million and what that could mean for business acquisitions in the lower middle market. Jared shares his perspective on the financing gap for larger acquisitions, the challenges buyers face when traditional SBA financing is insufficient, and the potential impact of expanded lending options on business ownership and employee retention. The episode concludes with Jared's advice for professionals entering the SBA lending industry. He emphasizes finding an area of specialization, becoming knowledgeable about the businesses and transactions you finance, maintaining strong credit standards, and protecting your reputation by prioritizing sound lending decisions. Whether you're considering buying a business, exploring SBA acquisition financing, or building a career in commercial lending. Main Takeaways • How Jared built his career in SBA lending: Jared discusses his early experience at Enterprise Funding, his transition into SBA 7(a) lending, and how he developed a specialty in business acquisitions. • The growth of entrepreneurship through acquisition: Buyers from investment banking, private equity, consulting, and other professional backgrounds are increasingly pursuing established businesses, often targeting acquisitions between $3 million and $7 million. • What SBA lenders look for in acquisition borrowers: Jared explains why liquidity, cash reserves, debt service coverage, and transferable management experience are important when evaluating an acquisition. • Why financing should support long-term ownership: Jared discusses the importance of structuring acquisitions that borrowers can successfully operate rather than focusing exclusively on getting a loan approved. • How the buyer pool has evolved: Jared shares his observations about buyers applying more sophisticated due diligence and acquisition practices to lower-middle-market transactions. • The importance of lender experience and execution: A bank's appetite for business acquisitions, ability to manage transaction volume, and understanding of acquisition financing can affect the lending process. • Jared explains how his team, educational videos, and borrower resources help him manage transaction volume while maintaining personal relationships with clients. • Jared discusses the possibility of $10 million SBA loans and the challenges lenders may face in financing larger transactions. • Buyers pursuing acquisitions beyond traditional SBA lending limits may need seller financing, outside investors, or more complex capital structures. • Why reputation matters in SBA lending: Jared emphasizes sound credit decisions, professional integrity, and developing expertise over years of consistent work.