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Acquisition pre-qualification

Enter the deal one step at a time and see how it reads against the SBA 7(a) baseline: the loan, the equity injection, debt coverage and the checklist, in one indicative review.

Read this first

The result is indicative. It is modeled from the figures you enter. It is not a commitment to lend and not an SBA approval. No lender reviews it, and Duneland does not lend.

The result on screen is free. Only the PDF asks for an email. Your figures stay in your browser until you ask for the PDF.

The pre-qualification steps

Step 1 of 5

What the money pays for

The uses of funds at close. Leave a line blank if it does not apply.

Debt of the target that is paid off from the proceeds.

Where the money comes from

Every source except the SBA loan, which is solved as the remainder.

Unborrowed cash you put in.

The SBA 7(a) loan

The amount is solved from the figures above. Enter the terms you expect.

Cash flow

What the business earns to pay its debt.

After a replacement salary and capital spending. Enter a loss as a negative number.

The baseline questions

Answer what you know. “Not sure” routes the question to review.

Is every individual owner, direct or indirect, a US citizen or US national with their principal residence in the United States, its territories or possessions?

Follow entity ownership through to individuals, not only the majority owners. A lawful permanent resident is not a US citizen or US national. This question does not assess entity formation or SBA-required guarantors. Those require lender review, including the limited-guaranty exception described in the current SOP; that exception does not permit ineligible ownership.

Is the target an operating, for-profit business located in the United States?

The SBA program is for operating small businesses in the US. A passive investment, a non-profit, or an operation based abroad raises a different question entirely.

Does the target meet the SBA size standard for its industry?

Size standards vary by industry and are measured by employees or by average annual receipts. Affiliated businesses may be counted together, which catches buyers who already own something.

Is this a complete change of ownership — the buyer acquiring 100% of the business?

A partial change of ownership is treated differently from a complete one, and the treatment has changed more than once.

Does the buyer, or any affiliate, already have an SBA loan outstanding?

Existing SBA exposure counts against the program maximum, and affiliate exposure counts too. This is a common reason a deal that looks inside the ceiling is not.

Does the structure rely on a seller note counting toward the equity injection?

If it does, the treatment of that note is a decisive question rather than a detail. The SBA publishes a standby creditor’s agreement form, which records such an arrangement; the form does not by itself establish that a structure is eligible or that the note counts as equity.

Could the buyer obtain this financing on reasonable terms without an SBA guaranty?

The program exists where credit is not otherwise available on reasonable terms. A lender makes that assessment; it is not a question a buyer answers about themselves.

What happens next

A constraint means the figures or answers conflict with a rule this page checks. Review means a question this page cannot settle. Either way, a lender decides with documents and facts this page does not collect.

If you want a second view on the structure, talk to our team. Duneland can discuss SBA and non-SBA routes, including bank debt, private credit and seller notes.

Model the details

  • Valuation and SDE — What are the earnings, and what is the business worth on them?
  • Seller financing — What does a seller note actually cost, and what is owed at maturity?
  • Capital stack — How does the whole purchase get funded?

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Illustrative results for planning. Not a financing commitment, financial advice or legal advice.

Duneland Financial is an independent capital advisory firm and does not directly extend credit. Financing is provided by third-party lenders and capital providers and remains subject to their individual underwriting, approval and documentation requirements. Information provided on this website is for informational purposes only and does not constitute a financing commitment, financial advice or legal advice.

Have a deal in front of you?

Whether you have a signed LOI, are preparing an offer or are still evaluating the opportunity, send us the basic numbers and where you are in the process. We’ll look at the business, buyer and proposed structure and determine what the financing path may look like. No deal yet? Tell us what you are exploring, and we’ll show you the financing paths that may fit.

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