Business Financing

Business Financing

Developing a solid understanding of how business purchases are funded is essential for both business buyers and sellers. We encourage all business buyers and sellers to familiarize themselves with the most common forms of financing used for Main Street and Middle Market business transactions. The following can help you get started with your research, but we encourage you to confer with your Sunbelt business intermediary to obtain more details about current market conditions.

Bank Financing

  • Bank financing for Main Street businesses is typically in the form of SBA loans. SBA loans are originated by SBA participating lenders, which generally make the loan with the SBA effectively guaranteeing the lender that the lender will be repaid. Those loans are approved and originated by SBA participating lenders. The SBA, in turn, agrees to guarantee some percentage of the principal balance of the loan. SBA-backed loans are subject to specific underwriting guidelines regarding fees, interest rates, collateral, personal guarantees, amortization, covenants, and other forms of debt. To learn more about the SBA and its loan programs go to www.sba.gov or talk to your Sunbelt Broker. In specific circumstances, non-SBA bank loans may also be available fo