I want to purchase an existing business.
Could i get a SBA 7(a) loan to purchase an existing business ( realty management) that has being in the business for many years and has a net income of $150K? a little bit about me i owned two rental properties and a single family house in which i have equity on the two rental properties,i was thinking of refinancing one of the investment properties so i could get the downpayment for the loan. I have Excellent credit 750+ and the loan amount will be 500K?
Great question! Yes, you should be able to use an SBA 7(a) loan to buy an existing business. As long as you have good credit (which it seems like you do) and a downpayment equal to at least 10%, then you should have no problem qualifying for a loan of $500k.
For more information on how to get a loan to buy a business (including info on SBA loans to buy a business), you can check out our article here: https://fitsmallbusiness.com/how-to-get-a-loan-to-buy-a-business/