Acquisition capital
Most buyers close on 10% down. We build the capital stack.
Freedom Business Group works with SBA preferred lenders and Kern County community banks to pre-qualify buyers before an offer goes out — so sellers see funded offers, not maybes.
- $5M
- Max SBA 7(a) acquisition loan
- 10%
- Typical buyer equity injection
- 1.25x
- Coverage lenders underwrite to
- 45–90
- Days from offer to funding
Deal funding calculator
Model the stack, monthly debt service and coverage ratio. Lenders want 1.25x or better.
Capital stack
Monthly debt service
$12,092
Coverage is comfortably above lender minimums. Marker shows the 1.25x minimum.
- Cash required at close (incl. ~3% costs)
- $123,500
- Annual debt service
- $145,100
- Debt service coverage
- 1.96x
- Owner earnings after debt
- $139,900
- Year 1 interest
- $75,810
- Year 1 principal paid down
- $69,290
- Max price at 1.25x coverage
- $1,492,762
Estimates only. Seller note modeled at 6% over 5 years. Actual terms depend on lender underwriting, collateral and buyer experience.
Send this scenario to a lenderFrom first call to funding day
Funding review
30-minute call to size your buying power, liquidity and industry fit.
Day 1
Lender packaging
We assemble your PFS, resume and injection proof into a lender-ready file.
Days 2–5
Pre-qualification letter
SBA preferred lenders issue a letter you attach to every offer.
Week 2
Underwriting & close
Appraisal, business valuation and SBA authorization through funding day.
Weeks 4–12
Ways buyers fund a Kern County acquisition
Most common
SBA 7(a) acquisition loan
Up to $5M, 10-year amortization, typically 10% buyer equity. The workhorse of Main Street acquisitions.
Deal glue
Seller financing
Owner carries a note for part of the price. Aligns incentives, bridges valuation gaps, and often counts toward SBA equity.
Property deals
SBA 504 / real estate
For acquisitions that include the building. Longer amortization on the real property portion lowers total debt service.
Speed
Conventional & local bank
Kern County community lenders can move faster than SBA when the buyer has collateral or industry experience.
Working capital
Post-close capital line
A revolver or equipment line stacked on top of the acquisition loan so day one isn't cash-tight.
Structured
Earnouts & equity rollover
Performance-based consideration or a retained seller stake for larger, growth-stage transactions.
What lenders ask for
- Three years of business tax returns and interim P&L
- Buyer resume showing relevant management or industry experience
- Personal financial statement and 10% liquid injection
- Credit score generally 680+ with no recent defaults
- Business cash flow covering debt service at 1.25x or better
- Assignable lease or real estate under contract
Get pre-qualified before you offer
We introduce you to SBA preferred lenders active in Kern County, California, package your file, and deliver a pre-qualification letter that makes your offer credible. No cost to buyers.
(661) 243-0739
Shane@freedombusinessgroup.com
Funding questions buyers ask
How much cash do I really need to buy a business?+
SBA 7(a) acquisitions typically require 10% equity injection, and up to half of that can come from a seller note on full standby. On a $950,000 deal that is roughly $95,000, plus closing costs and working capital.
What credit score do SBA lenders want?+
Most preferred lenders look for 680 or better with no recent defaults, tax liens or open bankruptcies. Strong industry experience can offset a thinner credit file.
How long does SBA funding take in Kern County?+
A packaged file with clean books usually funds in 45 to 90 days from accepted offer, depending on appraisal and landlord lease assignment timing.
Does it cost me anything to get pre-qualified?+
No. Buyer-side funding review and lender introductions are free. Lenders are paid at closing out of the loan proceeds.