Business Acquisition Loans in San Jose
Acquire an established California business with as little as 10% down.
- 24-hour funding on working capital files.
- 75+ lenders — banks, SBA, fintech.
- No upfront broker fees — paid by the lender at funding.
What it is and how it works in San Jose
Buying an existing San Jose business with SBA acquisition financing is one of the most under used wealth building strategies in California. The SBA 7(a) program will finance up to 90% of the purchase price of a profitable operating business, repaid over 10 years from the cash flow of the business itself. We've helped buyers acquire dental practices, HVAC companies, manufacturers, accounting firms, and franchises across the Silicon Valley.
An SBA 7(a) loan structured specifically for acquiring an existing business (or a partner buyout). Up to $5M at 10% buyer equity, 10-year amortization, fully secured by business assets and goodwill.
How Acquisition Loans works
- 1
LOI signed with the seller.
- 2
We package the buyer's financials and the target's last 3 years of tax returns, current P&L, and asset list.
- 3
Quality of earnings review and valuation by the lender.
- 4
Term sheet within 2-3 weeks of complete file.
- 5
Closing, funding, and ownership transfer in 45-75 days from LOI.
Benefits
10% buyer down typical; seller financing can sometimes be subordinated.
10-year fully amortized payment, longer if real estate is included.
Loan repays from the acquired business's cash flow, not the buyer's.
Existing partners can buy out departing partners under the same structure.
Qualification requirements
- Buyer FICO of 680+
- 10% equity injection (5% can be seller financing under specific conditions)
- Acquired business has at least 2 years of profitable operations
- DSCR of 1.25x or better on combined cash flow
- Buyer industry experience strongly preferred
Documents typically required
- Letter of intent with seller
- Target business's last 3 years of tax returns
- Buyer's last 3 years of personal returns
- Buyer personal financial statement
- Quality of earnings report (often lender ordered)
How San Jose businesses use Acquisition Loans
A San Jose associate dentist acquires the practice she's worked at for 6 years: $1.8M purchase, $180K down, 10-year amortization.
A West Valley logistics company buys out the retiring co founder for $1.2M over 10 years.
A buyer acquires three operating San Jose fast casual locations from a multi unit operator for $2.4M.
California's owner operator generation is at retirement age. Thousands of profitable Silicon Valley businesses will change hands in the next decade. SBA acquisition financing is the bridge.
