Most small-business acquisitions in the US close with SBA 7(a) financing, and most SBA timelines slip for the same reason: documents the lender needed weeks earlier arriving late, out of date, or unreconciled.
This checklist covers the three document packages an acquisition loan requires: yours as the borrower, the target company's, and the closing set. Assemble the first two in parallel with your LOI and underwriting has nothing to wait for.
The borrower package (you)
- Personal financial statement (SBA Form 413)
- Three years of personal tax returns
- Resume demonstrating relevant management experience
- Personal credit authorization
- Source-of-funds documentation for your equity injection
- Business plan and financial projections for the acquired company
- Citizenship or residency documentation
The target company package
- Three years of business tax returns and financial statements
- Interim financials no older than 90 days at submission
- A purchase agreement or signed LOI with price and structure
- Business valuation (lender-ordered for most deals)
- Accounts receivable and payable aging
- Equipment list and any real estate details
- Lease with assignment terms, or landlord consent
- Licenses and permits required to operate
- Franchise agreement and FDD where applicable
Deal structure documents
Structure documents get lender scrutiny because SBA rules constrain them: seller notes counted toward equity injection typically must sit on full standby for a period, and earnouts are generally not permitted in 7(a) acquisitions. Get lender eyes on your structure before the purchase agreement is drafted.
- Seller note terms, if any, with SBA-compliant standby provisions
- Non-compete agreement from the seller
- Transition or consulting agreement terms
- Entity formation documents for your acquisition company
Closing requirements
- Business insurance with lender as loss payee
- Life insurance assignment where required
- Final executed purchase agreement
- Entity good standing and organizational documents
- Landlord estoppel and lease assignment executed
- Franchise consent, where applicable
Organizing it all for underwriting
Lenders process fastest when the package arrives complete and organized in their order. Share the checklist folders with your lender through the same data room your diligence runs in, with the lender in its own permission group, and updates like fresh interim financials propagate to everyone at once instead of by email chain.
Next steps
FAQ
How long does SBA 7(a) acquisition financing take?
Commonly 60 to 90 days from complete application to closing. Incomplete document packages are the most common source of delay, ahead of appraisal and underwriting queues.
How much down payment does an SBA acquisition require?
Typically at least 10 percent equity injection, part of which can sometimes be a seller note on standby, subject to current SBA rules and lender policy.
Why do interim financials keep getting re-requested?
SBA lenders generally cannot close on financials older than a few months, so a slipping timeline forces refreshes. Keeping monthly financials flowing into your diligence room prevents the scramble.