Fit Small Business: Get Your Business Into Shape! › Forums › Small Business Finance Forum › Can I get a DBA loan for a purchase of an existing business? › Reply To: Can I get a DBA loan for a purchase of an existing business?
That’s a great question! SBA lenders typically like to lend money to established businesses because it cuts down on their risk if the same owners will be executing strategies that have been working to this point. However, the SBA routinely gives loans to people to buy existing businesses. You’ll just need to prove to the lender how you’re going to be successful.
I would recommend putting together a sound business plan that the current owner agrees with (in terms of financial projections and marketing/operations). The fact that the current owners are willing to consult for free for 1 year will help you overcome many of these reservations that the lender may have. You may need to bring on an operations employee with industry experience to help you run the business if you don’t have any, but an SBA loan is a great option for you.