What is a business acquisition loan?

Business acquisition loans fund the purchase of an existing business. SBA 7(a) loans (up to $5M, 10-year terms) are the most common vehicle — they allow financing up to 90% of the purchase price if the business has strong cash flow. Lenders require a down payment of 10-30%, the target business's financial statements for 3 years, and evidence the acquisition cash flow can service the debt.