Financing a purchaseNov 10, 2026
What the SBA says a 7(a) loan can be used for when you buy a business
The SBA's 7(a) page lists a change of ownership as a permitted use and caps loans at $5 million. The price cap and the loan cap are not the same thing.
Many first-time buyers of small businesses plan to use a loan from the US Small Business Administration's 7(a) program. We read the SBA's 7(a) loan page to see what it says on a purchase.
The page states that the maximum 7(a) loan amount is $5 million. Among the allowed uses it lists changes of ownership, complete or partial, which is the category a business purchase falls into.
The page we read does not set out the equity a buyer must put in, the interest rate or the repayment term for an acquisition loan. Its detailed table covers a separate working-capital pilot, so we are not quoting those terms here. Those details come from the SBA's rules and from the lender, so ask the lender for the current figures in writing.
We also saw a figure online claiming the SBA had raised its limits to $10 million. We could not confirm that on sba.gov, so we have left it out.
Sources
We wrote this story ourselves from the sources below. Open them for the full text and exact wording.
This is a reading of public information, not investment, legal or tax advice. If a figure here is wrong, tell us and we will correct it.