You Found the Business. Now You Need to Fund It Without Losing the Deal.
Business acquisition financing is not one product. It is a capital stack decision. SBA for sub-$5M deals. Conventional and mezzanine above that. Seller note structures can reduce your cash at closing to near zero. PeerSense identifies the source that fits your specific deal and gets you in front of it directly.
Business acquisitions of $10 million to $50M+ are commonly financed with SBA 7(a) loans up to $5M, conventional bank debt, mezzanine financing, or seller note structures. Most acquisitions require 10 to 20% buyer equity. SBA 7(a) offers a 10% down payment for qualified buyers. The SBA 7(a) path can be one layer of a larger stack for a $10 million and up deal, when the buyer is strong and experienced. PeerSense reviews every deal before matching it with a capital source, using a network informed by 5,475 lenders and 2.1M loans analyzed.
Published by PeerSense Capital Advisory, written by Ed Freeman, Founder. Updated July 1, 2026.
Why Buyers Lose Deals They Should Have Won
The Bank Said No, or Took Too Long
The business has solid cash flow. But your tax returns show depreciation, write offs, or Schedule C complexity that makes the bank uncomfortable. Or the bank is running a 90 day process while your seller needs 45 days. The deal dies, not because it was unfinanceable, but because you were using the wrong source.
You've Hit the SBA Ceiling
The combined 7(a)+504 SBA limit is now $10M, effective July 4, 2026, but that does not fully solve a business acquisition. The 504 program cannot fund goodwill or business value, so pure acquisition SBA capacity is still practically the $5M 7(a) loan. On a $6 to 10M acquisition, you will typically need a combination structure, SBA plus conventional, or a non bank source that operates above the SBA cap. Most advisors only know SBA.
The Seller Wants Cash You Don't Need to Part With
A full standby seller note can cover up to 50% of your required equity injection under current SBA guidelines. When structured correctly, some buyers close with as little as 5% of the purchase price out of pocket. Most buyers write the full 10% check because they were never shown another option.
You're Buying a Competitor, and That Changes Everything
If your existing business operates in the same industry as the business you are acquiring, you may qualify for 0% down on SBA financing. That is how the program was designed, not a loophole. Most banks do not volunteer this information.
Business Acquisition Financing: By Deal Size and Structure
SBA 7(a): Up to $5M (or up to ~$10M with combination structure)
Best for: First time buyers, owner operator acquisitions, and businesses where goodwill and intangibles make up most of the value, including financial advisory practices, dental offices, service businesses, and professional services.
Current Terms (February 2026)
6.75% to 9.75% (WSJ Prime 6.75% + SBA capped spread up to 3.0%)
Up to 10 years, fully amortizing, no balloon payments. Up to 25 years if real estate is included.
10% minimum. With a full standby seller note, cash at closing can be as low as 5%.
Potential for 0% down. This remains subject to deal structure and lender approval.
Can be bundled into the loan, so you don’t start the business on empty.
30 to 60 days with a Preferred Lender and clean file.
Seller Note Callout
Under current SBA guidelines (SOP 50 10 8), a seller note on full standby, with no principal or interest payments during the life of the SBA loan, can count toward up to 50% of the required equity injection. That means a deal requiring 10% down can often close with 5% cash from the buyer. PeerSense advises on seller note structuring before you submit to any lender.
Why Going Direct to a Bank Can Cost You the Deal
The Bank
One Lens. One Answer.A bank has one set of products, and its underwriters see your deal through one lens. If it does not fit, you get a no, or a 45 day process that outlasts your LOI window. The bank will not advise on seller note structures, same industry exceptions, or which sources are moving on your deal type. That is not its job.
The Aggregator
Responses, Not Strategy.An aggregator submits your file to a list of lenders and waits. There is no deal structuring or guidance on DSCR modeling, seller note structure, or whether your equity injection strategy is leaving money on the table. You get responses, not a strategy.
PeerSense
Structure First. Then Source.PeerSense reviews the deal before you apply anywhere. Ed evaluates the capital structure, identifies which source fits your profile by deal size, industry, seller note structure, timeline, and credit, and tells you what to know before you spend 60 days with a lender that was never going to approve it. Then he makes the direct introduction and stays involved through closing.
How PeerSense Gets Paid: Why It Matters
PeerSense earns a referral fee at closing, paid by the lender, the applicant, or both, depending on how the deal is structured. No exclusivity is required.
When PeerSense introduces you to a capital source, that relationship is tagged to us for three years. Ed is financially invested in making the right introduction, not simply the quickest one.
Is Your Deal a Fit?
Strong Fit
- Buying an established business with cash flow, not a startup or pre revenue business
- Deal size: $10M to $50M+
- 640+ personal credit, though tell us if you are below that and we can still look
- Industry: Manufacturing, logistics, healthcare, food processing, construction, professional services, business services, distribution, franchise operations, and other broadly eligible businesses
- Under LOI or close to signing one
- A seller open to a seller note, since even partial standby can help the structure
- A buyer from the same industry who may qualify for a reduced or zero equity injection
May Need a Different Path
- Startup with no operating history for underwriting
- Business with negative or unpredictable cash flow
- Deal supported only by future projections, with no trailing performance
- Personal credit below 580 without meaningful compensating factors
"If you are not sure which column fits your deal, start with a call."
Model Your Acquisition Deal
See how SBA injection, seller notes, and equity compare for your target purchase price.
Related Financing Options
Franchise Partner Buyout ($1M+)
SBA and bridge stack patterns for multi unit franchise partner buyouts and refinances.
SBA Loan Programs
SBA 7(a) and 504 loans with as little as 10% down for qualified buyers.
Auto Repair Shop Acquisition
SBA, non QM owner occupied, and leased structures for auto repair acquisitions.
Private Credit & Mezzanine
Subordinated debt and mezzanine capital to fill gaps in your acquisition stack.
Franchise Acquisition
Specialized financing for franchise purchases with SBA approved lenders.
Motorcycle Dealership
SBA and non QM real estate financing for motorcycle dealership acquisitions.
CMBS Loans $10 million and up
Conduit financing for commercial real estate at $10 million and up, with non recourse and 10 yr fixed terms.
Free Deal Scan
Get a complimentary assessment of your deal financing options.
How PeerSense Works
Well Capitalized Deals
65% LTV or lower, strong DSCR, experienced sponsor, $10M+ deal size
- Fee at closing only
- Direct access to a senior PeerSense advisor
- Pre underwritten before lender submission
- Matched to an active conduit or lender
Deals Requiring Structuring
Higher LTV, limited equity, a complex capital stack, or an early stage business
- Engagement fee applies and is credited at closing
- Full deal packaging and structuring
- Capital stack optimization
- Multiple lender submissions
We set every fee upfront in a written agreement. Deals with strong capitalization at 65% LTV or lower receive priority service.
Acquisition Capital Channels
Where Business Acquisition Capital Comes From in 2026
Deals from $10M to $50M+ usually draw from four primary capital channels, along with seller financing and rollover structures. The right fit depends on deal size, sponsor quality, and industry profile.
SBA 7(a) Acquisition Lenders
Primary tool for $500K to $5M acquisitions. 10% minimum buyer equity. 25 yr amortization with RE or 10 yr without RE.
About 30 active, high volume SBA preferred lenders nationally across 4 archetype categories: vertical specialty SBA banks for vet, dental, hotel, and self storage; major bank SBA divisions with broad industry coverage; regional preferred lenders with geographic depth; and multi unit franchise specialists. PeerSense routes each deal to the category that fits the industry, deal size, geography, and sponsor profile.
Conventional / Mid Market Banks
For $5M to $50M deals above the SBA cap. 25 to 35% buyer equity is typical. Recourse and financial covenants apply.
Major bank middle market commercial banking groups. A fit for $10M+ acquisitions when the buyer wants banking relationships across personal, business, and CRE.
Mezzanine and Sub Debt for Acquisitions
Fills the equity gap on $5M to $100M+ deals. 11 to 15% all in, including current and PIK. 5 to 7 yr term with a second lien.
Public and private BDCs and middle market direct lenders. Sponsor backed mezzanine and unitranche for PE acquisitions.
Search Fund and Self Funded ETA
Designed for first time CEO buyers acquiring established companies.
Purpose built searcher SBA programs, institutional search fund LPs, and ESOP financing specialists. Seller financing at 10 to 25% of purchase and rollover equity at 15 to 35% are also common. They are structural, not lender capital, but typically needed.
Worked Capital Stack
$5M Specialty Manufacturing Acquisition: Layered Capital Stack
A first time buyer with an operator background and 12 yr industry experience is acquiring a $5M specialty manufacturer at an EBITDA multiple. The business has $600K trailing EBITDA and an 8.3x multiple, plus $500K for working capital and transaction costs.
Total Project Capitalization
- Purchase price: $5,000,000
- Working capital + closing costs: $500,000
- Total project: $5,500,000
Capital Stack
- SBA 7(a) loan: $3,750,000 (68%)
- Prime + 2.25% = 9.00% variable, 10 yr amortization, about $47,500 per month P&I
- Seller note: $750,000 (14%)
- 7% interest, 24 month full standby, SBA eligible as equity, then 5 yr amortization
- Mezzanine: $500,000 (9%)
- 12% current pay + 2% PIK, 5 yr term, second lien junior to SBA
- Buyer cash equity: $500,000 (9%)
- Meets the SBA 10% minimum injection requirement because seller standby counts as equity
Year 1 Cash Flow Coverage
- Trailing EBITDA: $600,000
- SBA 7(a) annual debt service: $570,000
- Seller note, full standby from Y1 to Y2: $0
- Mezz current pay: $60,000
- Total Year 1 debt service: $630,000
- Y1 DSCR: 0.95x (TIGHT)
- Y1 is tight by design. The buyer is relying on forecast EBITDA growth from 10% in Y1 to 25% in Y3 from operational synergies. The lender accepts the structure because the seller note is on full standby until Y3, the buyer has a $250K liquidity reserve, and a personal guarantee plus SBA 75% guaranty backstops downside.
Layered stacks like this let PeerSense close $10M to $25M acquisitions that fall outside one lender's box. SBA plus seller financing plus mezzanine plus equity is the standard mid market structure. Each layer supports the next layer's investment case.
Get Your Acquisition Financing Options
Send the target business, purchase price, and equity available. SBA 7(a) can be one layer of a larger stack for a $10 million and up deal with a strong buyer. Once the file is on the desk, we will recommend a structure.
Business Acquisition: The desk will reach out. No obligation.
Deals We Structure
Originators, factoring, CMBS, and bridge. Sizes and structures only. No counterparties named. PeerSense sources capital through a curated network of commercial lenders and capital sources.
$10 million and up value add multifamily bridge
Named takeout first. Close follows the book.
Indicative only, as of October 1, 2026. Not a quote, commitment or offer of credit. Final pricing, leverage and terms are determined by the lender at underwriting, after full transaction materials are reviewed. PeerSense sources the file. The lender sets pricing. What these terms mean.
Acquisition Clients on Working With Ed
“Ed was of great help. We were working with a tight deadline and he secured senior debt quickly, gathering a half dozen term sheets within a week's time. He was pleasant, on top of things, and highly professional. We will certainly work with Ed again, and can strongly recommend his people-connecting skills to anyone interested in high-quality contacts.”
Dave Klivans, Client · Always Make Time to Be KindVerified via LinkedIn →“Ed is an exceptional franchise broker. He offers cost-effective 401(k)/IRA ROBS solutions and SBA funding options that set him apart in the industry. Unlike most, he provides these services without any upfront fees, which is VERY rare to find. Ed also brings helpful tax strategies and ideas to the table. His network is another standout feature, connections include franchise and non-franchise attorneys, investment bankers, financial advisors, tax consultants, and private equity investors.”
Joshua Malik, Founder & CEO · Joshua Tree Experts, Tree Care FranchiseVerified via LinkedIn →“Ed is as good as they come in his field. He is extremely persistent, knowledgeable and willing to go the extra mile for his clients. I worked with Ed for close to two years trying to find a franchise I thought was right for me. I had nearly given up hope. Then Ed called me at 6:30pm on a Friday night and he had found the perfect fit. I ended up purchasing three territories of the men's health franchise Ed presented to me.”
Jerod Wolff, Commercial ManagerVerified via LinkedIn →“Ed's expertise in financial solutions has been instrumental in our franchisee's success. He consistently demonstrates an exceptional ability to provide unique and cost-effective 401(k)/IRA ROBS solutions and SBA funding options. His network spans individuals capable of writing multi-million-dollar checks to entities prepared to invest up to one or two billion dollars. What truly sets Edward apart is his dedication to honest and straightforward communication.”
Dylan DeGroat, Director of Operations · Joshua Tree Experts FranchisingVerified via LinkedIn →“Ed is an exceptional leader and consultant in the franchising industry. He is consistent and thorough in his follow up and helped our brand execute our first multi-unit franchisee in the Scottsdale market. He works hard for his clients and provides them with the support and guidance to give them confidence in their decision to invest in a franchise.”
Kaitlin Johnson, Franchise Advisor & Development LeaderVerified via LinkedIn →“Even after I purchased the Franchise, Ed is still a part of my journey, following up to see if he can help in any way, or just being a friend and asking how things are going. I would highly recommend using Ed's company if you are considering purchasing a franchise. No pressure, only good honest information and guidance.”
Matt Hamm, Vice President · PharmaneekVerified via LinkedIn →“I've had the pleasure of working with Ed Freeman over the years, and he has been a constant source of encouragement, insight, and creative problem-solving. From providing me with strategic business solutions to coaching me through challenges, Ed has always been generous with his time and expertise. His ability to identify opportunities, offer actionable advice, and genuinely care about others' success sets him apart as a true leader and strategist.”
Matt Long, Director · SSA Group LLCVerified via LinkedIn →Live Google Reviews
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Frequently Asked Questions
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Disclaimer: PeerSense sources capital through a curated network of commercial lenders and capital sources. All rates, terms, market data, and estimates shown on this page are approximate and may change with market conditions, borrower qualifications, property specifics, and lender discretion. Nothing on this website is financial, legal, or investment advice. Individual results vary. Verify all information independently. Past performance and market data do not guarantee future results. Consult qualified legal and financial professionals before making financing decisions.
Page Review
Reviewed by Edward L. Freeman, Founder and Managing Director, PeerSense
- PeerSense is a capital advisory firm that places commercial financing with direct capital sources; it does not lend, fund, or approve loans, and the capital source sets final terms.
- Edward L. Freeman founded PeerSense in January 2020.
- His recorded experience includes a $22 million SBA construction loan, with about $16 million funded on the deal.
- In the 12 months through September 30, 2026, PeerSense tracked 912 publicly announced financings with a disclosed size of $361.32 billion. PeerSense Capital Data Report · Methodology page
Last reviewed LinkedIn profileAbout Edward Freeman