SBA and Acquisition Financing

SBA and Acquisition Financing



Why Business Funding Northeast?

When two entrepreneurs tried to buy a services business and building they were turned down by two banks and given our name. When we asked what banks turned them down and if they knew why the banks had turned them down I told them:

  • They were outside the “footprint” of one of the banks
  • The deal was too small for the other and the collateral wasn’t the best

SOLUTION? We made one application to one bank and five weeks later – YES!!! FIVE WEEKS LATER – their loan closed and they owned the business and the building.

SOME SBA BACKGROUND Created in 1953 the Small Business Act launched our SBA and 504 loans which are created by lenders with a portion guaranteed by the SBA or other government entities in some cases. That said our local banks provide them as do regional and national lenders and for many of the banks it has become a point of pride. Imagine this: Some lenders ONLY offer SBA loans … so they must be doing something right!

OF NOTE: Each lender has a risk tolerance of what they’ll do or not do and this is where we excel is knowing what banks have an appetite for what loans … thus getting you a faster turn around and most likely the best rate and terms.

Many of our successful SBA loans were turndowns for SBA loans at other banks. Why? The Borrower talked to the wrong bank.

IS IT TRUE THAT SBA LOANS TAKE A LONG TIME TO PROCESS? When something isn’t working well people always try to improve the process and the SBA Process has come a long way to shorten the time to process and close a loan. What slows it down?

  • Missing information from the borrower
  • Incorrect information about the business or the borrower’s background/experience
  • The borrower buying/selling assets being assessed as collateral for the loan or changing their debt-to-income status

What is speeding it up? Forty years ago everyone in the process was learning about a process that kept changing but in today’s world the people within the SBA are very experienced as are the loan originators we deal with at the bank.

Call to discuss your need @ 1-978-857-6093 or email me personally @


  • Does the business contain collateral or is it only cash flow based? We do both you know!
  • Is the business retail or manufacturing/wholesale?
  • Do you have 10% of the loan amount in cash and can you show where it came from?
  • Is your credit must be 625 or better … depending on the lender you apply to (some are 675(+))
  • Have defaulted on a previous government loan – bankruptcies included – we need to fix it!
  • You must have viable and applicable experience and/or skills managing and/or working in the market niche of the business you’re trying to acquire or finance
  • The business plan and the projections need to make sense and need to be able to show the ability to support the debt service of the loan being applied for with anywhere from 10% – 25% overage … depending on the lender you talk to
  • The value of the property and/or cash flow of the business will need to be appraised to justify the amount of money being loaned

Are there ways around some of the above parameters? Sometimes. We’ve consulted with several of our successful loan recipients when they didn’t fit the mold and with a team effort got them their loan BUT even if you meet the above guidelines there can still be some hidden stumbling blocks. As with anything we don’t always know what will turn up until we “peel back the onion” as we like to say.

We can save you a lot of time and money so when you are ready to apply let’s discuss your opportunity and we’ll be only too happy to help or to at least point you in the right direction!


SBA and Acquisition Financing                                               PRELIMINARY APPLICATION LINK: (CLICK HERE)

Call me directly: Ernie Brown 1-978-857-6093

Email me:  

Put a proven track record to work for you - Call Ernie Today!

Ernest P. (Ernie) Brown