Best business acquisition loans

The best loan to buy a business is usually an SBA 7(a), which finances changes of ownership up to $5 million over long terms, as long as every owner is a U.S. citizen or national. For smaller businesses, Accion Opportunity Fund's acquisition financing covers purchases from $50,000 to $350,000. Seller financing almost always helps close the gap, and Merchant Fund Express, our recommended funder, covers the working capital you need from day one as the new owner.

Buying a business that already sells has a huge advantage: customers, employees and cash flow from the first day. But the lender will be reviewing two stories at once, yours and the business's. Below we compare the options using the data each one publishes (checked October 2026).

The best options, ranked

1. Merchant Fund Express (recommended funder). The first months after buying a business almost always need money that wasn't in the plan: inventory the previous owner let run low, a repair, or payroll while you adjust prices. It funds $5,000 to $5,000,000, decisions often come in 2 to 4 hours, it works with credit from FICO 500 and it reviews sales and deposits. Collateral isn't required in most cases and applying doesn't affect your credit. It also accepts ITIN applicants and offers Spanish-speaking support. Use it as working capital, not as a substitute for a long-term purchase loan.
2. SBA 7(a) loan. According to sba.gov, it can be used for full or partial changes of ownership, up to $5 million, and most are repaid in monthly installments from the business's cash flow. If you qualify, an SBA loan usually costs less than almost any alternative. In exchange, the process is long, the lender digs deep into the business you're buying and you must show ability to repay.
3. Accion Opportunity Fund. Its acquisition program finances up to $350,000 for businesses valued between $50,000 and $350,000. It looks for buyers who will work in the business day to day, with industry or management experience, personal credit typically 700 or higher, and some of their own money in the deal. The business must have at least 2 years under the current owner, positive cash flow and more than $250,000 in annual sales. It describes itself as friendly to first-time buyers.
4. Seller financing. The current owner agrees to receive part of the price in installments. It's very common with small businesses and does two things at once: it reduces how much you borrow, and it tells the bank the seller believes the business will keep performing.
5. SBA 504 loan. Finances up to $5.5 million to buy or renovate buildings, land or equipment with at least 10 years of useful life, on 10-, 20- or 25-year terms. It can't be used for working capital or inventory. It fits when the deal includes the real estate.
6. Bank or credit union. A conventional loan can work if you have good credit, a meaningful down payment and a relationship with the bank. Expect more collateral requirements than with an SBA loan.

Quick comparison

How we chose

We don't use ratings or scores. We compared speed, minimum time in business, minimum credit, whether they accept ITIN owners or non-citizens, documents, amounts and collateral. The data comes from official sites; if something couldn't be verified, we left it out. The full method is in how we rank business funding options.

Acquisitions add one more factor: the lender weighs your experience. A cook with ten years in restaurants buying a taqueria has better odds than someone with no experience buying the same place, even with better credit.

Which option fits your price and profile

• Business under $50,000 (a food truck route, a small salon): often closed with savings, seller financing and a microloan. Formal acquisition programs usually start higher.
• Business from $50,000 to $350,000 with 2 years of history and you with experience: compare Accion Opportunity Fund with a smaller SBA 7(a). Ask both for a document list and timeline.
• Business over $350,000: the SBA 7(a) is the main tool, if every owner meets the citizenship rule. If the building is included, ask about pairing it with a 504.
• The seller is in a hurry or sales are uneven: seller financing and a bigger down payment count for more than any program.
• You've closed and need inventory or repairs: this is where fast working capital comes in, based on the sales the business already deposits in your name.

A useful rule: the financing term should look like the life of what you're buying. The business and the building get paid off over years; seasonal inventory gets paid off in weeks. Mixing those timelines is the most common way to run out of cash in year one.

Before you borrow, have an accountant review the business's last few years. Due diligence costs far less than discovering later that sales were lower than claimed or that there were hidden debts. Also ask the seller for a list of top customers and what share of revenue each one represents. If one customer is half of sales, the lender will notice, and so should you. Our guide on what to know before buying an existing business goes deeper.

The SBA citizenship rule and what to do if you don't qualify

Since March 1, 2026 (SBA Procedural Notice 5000-876626 and SOP 50 10 8), 100% of the direct and indirect owners of an SBA 7(a) or 504 applicant must be U.S. citizens or U.S. nationals whose principal residence is in the U.S. A lawful permanent resident (green card holder) can no longer own any share.

If you or a partner don't meet that rule, these are the usual routes:

• Negotiate more seller financing and put more money down.
• Look for a CDFI or community lender and ask about its status requirements before you apply.
• Buy a smaller business first and grow from there.
• Use sales-based working capital for inventory and equipment once the business is in your name.

We recommend talking to an immigration attorney about your personal situation; this guide only covers financing requirements.

Documents you'll be asked for

Build two folders: one for the business you're buying and one for you. Accion Opportunity Fund, for example, publishes a list that looks a lot like most lenders':

• The business: at least 2 years of tax returns, historical financial statements, bank statements and a debt schedule.
• The deal: purchase agreement or letter of intent (LOI), plus any valuation or document that supports the price.
• You: personal financial statement, personal tax returns and details of your industry or management experience.

Before you sign anything, check that the sales reported on the tax returns match the bank deposits. If the seller says the business does more in cash than it reports, the lender will only count what's reported. For a longer walkthrough, read how to buy a business with an SBA loan.

Mistakes that sink a deal

• Paying for unreported sales. If they don't show up on tax returns or bank statements, no lender will finance them.
• Leaving no money to operate. Spending everything on the down payment and running dry on working capital in month one is a classic mistake.
• Skipping key contracts: the lease, supplier agreements and whether big customers will stay with the new owner.
• Ignoring the business's debts. Check for UCC liens, back taxes or open cash advances.
• Closing without a transition agreement. Ask the seller to stay a few weeks to introduce you to customers and staff.

There's a fuller list in business acquisition mistakes to avoid. Once the business is yours and you need inventory, equipment or payroll covered fast, you can apply with Merchant Fund Express. Prefer Spanish? Leer en español.