Last updated: February 21, 2026
If you’re looking to buy a business, understanding current SBA loan rates is crucial to your acquisition strategy. With the Federal Reserve holding rates steady in January 2026 and the Prime Rate at 6.75%, SBA loans remain one of the most cost-effective financing options for business acquisitions.
Based on our analysis of 8,678 SBA business acquisition loans funded in FY2025-2026, the average SBA loan rate for business acquisitions is 9.31%, with a median rate of 9.50% and an average loan size of $1,175,340.
Current SBA Loan Rates for Business Acquisitions
| Loan Size Range | Rate Cap | Current Max Rate | Typical Range |
|---|---|---|---|
| $350,000+ | Prime + 3.0% | 9.75% | 8.25% – 9.75% |
| $150,000 – $349,999 | Prime + 3.5% | 10.25% | 8.75% – 10.25% |
| Under $150,000 | Prime + 4.5% | 11.25% | 9.25% – 11.25% |
Why Business Acquisition Rates Are Competitive
Business acquisitions typically receive favorable SBA loan rates because:
Established Cash Flow
Unlike startups, acquired businesses have proven track records, financial statements, and established customer bases. Lenders view this historical performance as reducing risk, which translates to better rates.
Collateral and Assets
Business acquisitions often include tangible assets, inventory, and equipment that serve as additional collateral. This asset backing helps secure more competitive rates.
Larger Loan Sizes
With an average loan size of $1,175,340, most business acquisition loans fall into the $350,000+ category, which has the lowest rate cap of Prime + 3.0%.
What Lenders Look for in Business Acquisition Deals
Debt Service Coverage Ratio (DSCR)
Lenders typically require a minimum DSCR of 1.25x, meaning the business’ net operating income should be at least 25% higher than the total debt service payments. Strong businesses showing 1.5x or higher DSCR often qualify for the best rates.
Credit Score Requirements
Most lenders prefer personal credit scores of 680 or higher for business acquisition loans. Scores above 720 typically unlock the most competitive rates and terms.
Down Payment
The SBA requires a minimum 10% down payment for business acquisitions, but lenders often prefer 15-25% down. Higher down payments can lead to better rates and terms.
Industry Experience
Lenders favor buyers with relevant industry experience. If you’ve worked in the same or similar industry, you’ll often qualify for better rates because lenders view you as a lower risk.
SBA Change of Ownership Requirements
SBA Form 1050
All business acquisitions require SBA Form 1050, which details the change of ownership structure and ensures compliance with SBA regulations.
Standby Agreements
If the seller is financing part of the purchase (seller note), the SBA requires a standby agreement where the seller agrees to defer payments if the business experiences financial difficulties.
Asset vs. Stock Purchase
The SBA generally prefers asset purchases over stock purchases for liability reasons. Asset purchases often receive more favorable consideration and potentially better rates.
Typical Business Acquisition Deal Structure
Purchase Price Breakdown
- SBA Loan: 70-90% of purchase price
- Buyer Down Payment: 10-25% of purchase price
- Seller Note: 0-10% of purchase price (if applicable)
Seller Note Considerations
When sellers provide financing, the SBA requires:
- Full standby of payments for at least 2 years
- Interest rate no higher than the SBA loan rate
- Term no shorter than the SBA loan term
Timeline for Business Acquisition SBA Loans
| Phase | Timeline | Key Activities |
|---|---|---|
| Pre-qualification | 1-2 weeks | Financial review, business plan, lender matching |
| Application & Underwriting | 4-6 weeks | Full application, due diligence, appraisal |
| SBA Review | 2-4 weeks | SBA approval process, conditions |
| Closing | 1-2 weeks | Final conditions, documentation, funding |
How GoSBA Gets You the Best Business Acquisition Rates
50+ Lender Network
We work with over 50 SBA lenders nationwide, each with different appetites for business acquisitions. This allows us to match your deal with lenders who specialize in your industry and loan size, often resulting in better rates and terms.
Rate Shopping Strategy
Not all lenders price the same. We submit your deal to multiple lenders simultaneously, allowing you to compare actual rate quotes rather than advertised ranges.
FREE Business Plan Development
A professionally written business plan can be the difference between approval and denial, and between a good rate and a great rate. We provide FREE business plan development services (valued at $2,500-$5,000) to strengthen your application and improve your chances of getting the best rate possible.
Industry Expertise
Our team understands the nuances of different industries and can position your acquisition in the best light possible. We know what lenders want to see and how to present your deal for maximum approval odds and optimal pricing.
Recent Market Trends Affecting Business Acquisition Rates
The Federal Reserve held rates steady in January 2026, keeping the Prime Rate at 6.75%. This stability benefits business acquisitions because:
- Predictable Payments: Fixed rates mean predictable monthly payments throughout the loan term
- Planning Certainty: Stable rates allow for better cash flow forecasting post-acquisition
- Market Conditions: Current rates remain historically reasonable for business financing
Compare Business Acquisition Rates to Other SBA Loan Categories
Business acquisitions typically receive more favorable rates compared to other SBA loan purposes:
- Business Acquisitions: 9.31% average (you are here)
- Commercial Real Estate: 8.87% average
- New Businesses: 10.29% average
- Working Capital: 10.53% average
For comprehensive rate information across all categories, visit our main SBA loan rates page.
Ready to Secure Your Business Acquisition Financing?
Get pre-qualified in 24 hours with rates from 50+ lenders. Our service is 100% free.
Frequently Asked Questions
What is the current average SBA loan rate for business acquisitions?
Based on 8,678 loans funded in FY2025-2026, the average SBA loan rate for business acquisitions is 9.31%, with a median rate of 9.50%.
How much down payment is required for a business acquisition SBA loan?
The SBA requires a minimum 10% down payment for business acquisitions. However, many lenders prefer 15-25% down, and higher down payments often lead to better rates and terms.
Can I get an SBA loan to buy a business with no industry experience?
While possible, lacking industry experience makes approval more challenging and may result in higher rates. Consider partnering with someone who has relevant experience or demonstrating transferable skills from related industries.
How long does it take to get approved for a business acquisition SBA loan?
The typical timeline is 8-12 weeks from application to closing, including pre-qualification (1-2 weeks), underwriting (4-6 weeks), SBA review (2-4 weeks), and closing (1-2 weeks).
What happens if the seller wants to finance part of the purchase?
Seller financing is allowed but requires a standby agreement where the seller defers payments if the business struggles. The seller note interest rate cannot exceed the SBA loan rate, and the term must be at least as long as the SBA loan.
