Know what you can buy
before you chase the deal.
A practical, 3-minute read on what your cash, credit, and target price actually support — before you email brokers, sign NDAs, and fall for a listing you can't finance.
Answer these before a lender does — not after.
- How much business can I really buy?
- Will SBA financing work for me?
- How much cash do I need?
- What deal size should I target?
- Will a broker take me seriously?
Down payment, in plain terms
SBA acquisitions generally need a ~10% equity injection — and sometimes as little as 5% cash when the seller carries a full-standby note. The check shows what your structure needs.
A typical SBA 7(a) business acquisition is structured with the SBA loan covering 80–90% of the purchase price, the buyer contributing 5–10% as an equity injection, and an optional seller note covering up to 10% on full standby. The SBA 7(a) program caps loans at $5 million. The lender sets final structure, equity requirements, and standby terms during underwriting.
What we review
Cash to close, credit range, net worth, experience — plus your target's price, cash flow, industry, and seller-financing need.
What you receive
A first-pass snapshot: a realistic target-size range, the likely gap, and a clear next step. For strong profiles, a path to a Preliminary Buyer Readiness Letter.
What it is not
Not a loan approval, pre-approval, commitment, or guarantee — and not a credit pull. It's a readiness review to save you months on the wrong deals.
$100K cash · $1M target
- Issue
- ~10% equity sits right at the floor, leaving no cushion for fees or working capital.
- Our read
- Possibly workable with a partial standby seller note.
- Lender concern
- Total injection, post-close liquidity.
- Next step
- Model a 5% cash + 5% standby-note structure.
$900K target · ~$450K financeable
- Issue
- Cash flow and collateral don't support the asking price.
- Our read
- The gap is too wide as priced.
- Lender concern
- DSCR, valuation support.
- Next step
- Renegotiate price or layer in seller financing.
Add-backs don't reconcile to tax returns
- Issue
- Adjusted earnings can't yet be substantiated.
- Our read
- Financeable amount likely sits below asking until proven.
- Lender concern
- SDE support, quality of earnings.
- Next step
- Substantiate add-backs before signing an LOI.
Illustrative, anonymized scenarios for explanation only — not offers, approvals, or predictions of outcome.
No. A financeability read is a first-pass assessment — not a loan approval, pre-approval, or commitment to lend. Lenders make all credit decisions after reviewing the full application, tax returns, business financials, collateral, and SBA eligibility. What the check gives you is a clear read on whether the basic structure — your cash, credit, experience, and target price — is in a range that lenders typically work with. If the basics look weak, you know before you waste an LOI or a seller’s time.
No. There is no credit pull of any kind. The check asks for your general credit tier (excellent, good, fair, or below fair) — you self-report. No hard inquiry, no soft pull, no impact on your credit score. SBA lenders will pull credit during actual underwriting, but Emporio never does. You can run the check as many times as you want with no credit consequence.
It depends on three things: the target business’s cash flow (SDE or EBITDA), your equity contribution, and lender criteria. The check gives you a realistic range based on those inputs — not a number a lender has committed to. Most SBA lenders require the deal to generate a DSCR of at least 1.25x after all debt service. The SBA 7(a) program caps individual loans at $5 million. Your actual borrowing capacity is the lower of what your cash supports as an equity injection and what the business cash flow can cover at a 1.25x DSCR floor.
SBA acquisitions generally require a 10% equity injection — meaning 10% of the purchase price paid from your own verified funds. On a $1 million acquisition, that is $100,000 in cash. Per SBA SOP 50 10, this floor can drop to 5% cash when the seller carries the remaining 5% as a full-standby seller note for at least two years. Beyond the down payment, plan for SBA guarantee fees (typically 0.5%–3.5% of the loan), lender fees, working capital reserves, and closing costs — which can add 3%–6% to your total cash at close. A buyer with $100,000 in verified liquid assets is generally targeting businesses in the $750,000–$1,000,000 range before fees are layered in.
Sometimes. Most SBA lenders read ‘relevant experience’ broadly — relevant industry background, management experience, or transferable skills from adjacent fields can qualify. Lenders are primarily concerned with whether you can run the business and service the debt. A detailed transition plan and seller training period can offset thinner experience. The check flags whether experience is likely to be a lender concern for your specific target industry, and notes when it is a significant gap versus a manageable one.
Yes, and that is one of the most useful times to run the check. Under-LOI situations get fast-tracked. We review whether the deal structure — price, cash flow, equity, and any seller note — supports SBA financing, flag lender concerns before you spend money on due diligence, and help you decide whether to renegotiate terms or walk. A financing problem found before the LOI expires is fixable. One found after closing is not.