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Best SBA loans for buying a business in 2026
The best SBA loan for buying a business is the standard 7(a) loan, which finances goodwill, equipment, inventory, and working capital for up to 10 years. If the purchase includes real estate, the property can be financed for up to 25 years or through a separate 504 loan. Most deals add a seller note. SBA Express suits smaller acquisitions up to $500,000.
By the WithFunded team · Published November 11, 2026 · Rates as of November 2026
The short list
- Best overall
- SBA 7(a) loan
- Best to pair with the 7(a)
- Seller financing
- Best when real estate is a large part of the price
- SBA 504 loan
- Best for a small acquisition
- SBA Express loan
The 4 best options, ranked
1. SBA 7(a) loan Best overall
The standard 7(a) loan is the main tool for small business acquisitions because it lends against cash flow and goodwill, not just hard assets.
Watch for: Heavy documentation, and the timeline rules it out for anything urgent. SBA loan guide →
2. Seller financing Best to pair with the 7(a)
A seller note reduces the cash you need and keeps the seller invested in a smooth transition. SBA rules govern how it must be structured.
Watch for: Usually covers only part of the price, so it works alongside a loan rather than instead of one.
3. SBA 504 loan Best when real estate is a large part of the price
Splitting the building into a 504 loan can lower the blended rate on the whole purchase.
Watch for: Only for fixed assets. It cannot fund payroll, inventory, or other working capital. SBA loan guide →
4. SBA Express loan Best for a small acquisition
For a purchase under $500,000, an Express loan can move faster because the lender makes the credit decision itself.
Watch for: A lower SBA guaranty means lenders can be more selective than on a standard 7(a). SBA loan guide →
Side-by-side comparison
| Option | Verdict | Cost basis | Funding speed | Qualifies on |
|---|---|---|---|---|
| SBA 7(a) loan | Best overall | Capped at 10.00%–13.50% by loan size (prime plus the SBA maximum spread) | Weeks to months | Generally stronger credit and two or more years in business |
| Seller financing | Best to pair with the 7(a) | Negotiated with the seller as part of the purchase | Follows the deal timeline | The seller's willingness; often paired with an SBA 7(a) loan |
| SBA 504 loan | Best when real estate is a large part of the price | CDC portion roughly 6.6% on 10 to 25 year terms | Weeks to months | Owner-occupied real estate or major equipment, plus a down payment |
| SBA Express loan | Best for a small acquisition | SBA-capped rates on amounts up to $500,000 | Faster than a standard 7(a), because the lender decides under its own authority | Similar to 7(a): solid credit and operating history |
What it costs
SBA 7(a) rates are capped at prime plus a maximum spread that shrinks as the loan grows. At the current 7.00% prime rate, these are the highest payments a lender could charge on a 10-year term:
| Loan amount | Maximum rate | Monthly payment at the maximum |
|---|---|---|
| $300,000 | 11.50% | $4,218 |
| $800,000 | 10.00% | $10,572 |
| $2,000,000 | 10.00% | $26,430 |
Payments at the SBA maximum variable rate for each size tier. Many borrowers qualify below the maximum. Source for rate caps: U.S. Small Business Administration. WithFunded calculation.
What lenders look at
- The target's tax returns and its ability to cover the debt and your salary.
- A business valuation, required on larger goodwill purchases.
- Your equity injection and management experience.
Mistakes to avoid
- Signing a purchase agreement without a financing contingency.
- Assuming the seller note can count as your entire down payment. SBA rules limit that.
Frequently asked questions
- How long is an SBA loan to buy a business?
- Up to 10 years for the business itself. Real estate included in the purchase can be financed for up to 25 years.
- What is the rate on an SBA acquisition loan?
- It is capped by size, currently between 10.00% and 13.50%. Loans above $350,000 fall in the lowest tier.
- What does an $800,000 SBA acquisition loan cost?
- At the current maximum rate, about $10,572 a month over 10 years. Many borrowers pay less than the maximum.
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How we ranked these options
This guide ranks types of financing, not individual lenders. Each option is ordered by how well it fits the need described on this page, judged on four things in this order: whether the structure matches how the money will be used and repaid, total cost, funding speed, and how hard it is to qualify. Cost figures are WithFunded calculations from published rate inputs as of November 2026: the bank prime loan rate from the Federal Reserve, the SBA maximum-rate schedule, and Federal Reserve survey data. The method follows our 2026 SMB Financing Cost Report, whose own figures use June 2026 rates.
WithFunded is a financing marketplace, not a lender. Our 2-minute form suggests a product type from the families we cover, and a funding partner reviews the request. Not every structure named in this guide is available through WithFunded: options such as SBA microloans, USDA farm loans, bank loans, and seller financing are ones you would pursue directly with the provider. They are listed because leaving out a good fit would make the ranking less useful.
Related guides
The top-ranked option on this page is SBA 7(a) loan because it fits the most common version of this need. Your own best fit depends on your revenue, time in business, credit, and how fast you need the money.
Disclaimer. WithFunded and Big Think Capital are a financing marketplace; we are not the direct lender and do not guarantee funding, approval, rates, or terms. Everything on this page is a representative example only — not an offer or a commitment to lend, and not financial advice. Actual rates, fees, payments, and terms are set by the funding lender and depend on your business, credit, and the product. Where required by state law, the lender provides cost-of-financing disclosures before any agreement is signed.