Real Ownership Scenarios
Scenario 1: SBA Financing
Classic 10% down SBA 7(a) acquisition.
Practical Explanation
The standard first-time buyer scenario. The buyer brings 10% cash, the SBA-backed bank loan covers 90%, the seller takes a full cash exit at closing. Predictable, well-understood, slower to close than seller-financed deals.
Real-World Example
$600,000 HVAC business. Buyer brings $60,000. SBA 7(a) lends $540,000 over 10 years at prime + 2.75%. Seller walks with cash.
Typical cash required
10% of purchase price + 3 months operating reserves.
Experience required
Industry or management experience strongly preferred.
Advantages
- ✓Clean ownership at close
- ✓Predictable terms
- ✓Seller fully exits
Risks
- !Personal guarantee
- !60–90 day close
- !Lien on personal assets
Frequently Asked Questions
Best fit?
Buyers with cash, decent credit, and relevant experience.
Related guides
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