Bank financing is a popular choice for business acquisitions in Florida. Typically, banks offer loans secured by either the buyer's personal assets or the business's assets. Banks assess the business's profitability, stability, and growth potential to ensure it can generate enough cash flow to cover the loan. Qualified buyers benefit from competitive interest rates and favorable repayment terms.

SBA loans are a top choice for small and medium-sized business buyers throughout Florida, offering flexibility, minimal down payments, and favorable terms. Backed by the U.S. Small Business Administration, SBA loans reduce the lender's risk, allowing banks to offer better rates and more attractive terms. Typically, SBA loans can cover up to 90% of the purchase price, with a 10-year repayment schedule and no prepayment penalties. Our website features a comprehensive list of SBA-qualified businesses, particularly in Broward, Palm Beach, and Miami, though options are available throughout the state. With our filter tools, you can quickly identify businesses that meet SBA qualifications, streamlining your search.

• Extended Terms for Lower Monthly Payments: SBA business acquisition loans often offer terms up to 10 years, spreading payments over time to help lower monthly costs. If property is included, terms may extend beyond 10 years, providing even more favorable options. Confirming specific loan terms with your lender ensures clarity, as loan structures vary based on assets.
• Stable Repayment with Potential Rate Adjustments: SBA loans typically feature no balloon payments, allowing predictable principal repayment. However, interest rates may adjust periodically, usually set one to three points above the prime rate. Discussing rate structures with your lender helps you plan for any adjustments that might impact financing.
• Preferred Lenders for Fast Approvals: Working with SBA-preferred lenders can accelerate loan approvals, providing a smoother, more efficient loan process.

A complete SBA loan application package is crucial to avoid delays. Here’s a breakdown of required documents:

• SBA Loan Forms: Complete all SBA-required forms included in the application package.
• Asset Purchase Agreement: Signed by both Buyer and Seller to confirm transaction details.
• Resumes for Applicants: Required for each owner with 20% or more ownership, signed and dated.
• Personal Tax Returns: Provide the last three years of signed and dated returns for each owner holding 20% or more ownership.
• Personal Financial Statements: Signed and dated for each major owner.

• Business Tax Returns: Last three years, signed and verified.
• Business Plan: Includes services, location, target demographics, staff details, and customer profile.
• Green Card Copies: If applicable, provide both front and back.
• Advisor Contact Information: Names, addresses, and phone numbers for banker,

• Refundable Deposit Check: At least $2,500, refundable if the loan application is declined.

• Interim Financial Statements: Up-to-date quarterly statement from the seller's business.
• Receivables and Payables Aging Report: If relevant to the business.
• Tax Returns for Other Businesses Owned: Last three years for each business owned by the borrower.
• Personal Bank Statements: Last two months to verify cash availability for the purchase.

• IRS Form 4506-T: Signed by the seller, authorizing access to three years of tax records.
• Gift Letter (If Applicable): Required if down payment funds are provided by a relative.
• Life Insurance Policy: Required on the borrower for the loan amount.

For business entities, the following corporate documents are typically required:

• Articles of Incorporation and Amendments: If applicable.
• Certificate of Good Standing: From the Florida Department of State.
• Corporate By-Laws and Officers List: Includes a current list of officers and their titles.
• Stock Certificates and Corporate Seal: Copies of all issued stock certificates; bring the corporate seal to closing.
• Fictitious Name Certificate: If the business operates under a fictitious name.
• Federal Tax ID Number (EIN): Ensure it is available.

• UCC-1 Lien Filing: Managed by the lender’s counsel.
• Vehicle Titles and Registrations: For any vehicles owned by the business.
• Attorney Opinion Letter: Issued by the borrower’s attorney in a lender-approved format.
• Lease Agreement: Fully executed, covering the loan term.
• Lease Assignment with Landlord Consent: Required if the business is leasing property.

• Current Business Licenses/Permits: Or validated applications if pending.

• Inventory List: Include detailed information for equipment, furniture, and fixtures, with model numbers and descriptions.

• Bank Statements or Canceled Checks: Showing funds originated from borrower accounts.

• Life Insurance Policy: Taken out on the borrower for the loan amount and assigned to the lender.
• Hazard Insurance: Covering all collateral, naming the lender as mortgagee.
• Flood Insurance: Required if applicable.
• General Liability Insurance: Minimum coverage of $1,000,000, with the lender as an additional insured.
• Worker's Compensation Insurance: Required per Florida regulations.

• Landlord's Legal Information: Name, contact information, and property description (parcel ID, lot number, etc.), with a legal description attached from a deed or tax record.

Seller financing allows buyers to get funding directly from the seller, reducing the upfront cash required and offering flexible repayment terms. This approach is popular among small business sellers, as it demonstrates the seller’s confidence in the business and provides the buyer with a manageable pathway to ownership. Seller financing typically involves the buyer making a down payment, followed by regular payments over an agreed period.