Financing Comparator

How to Read This Table

Each row applies a typical 2026 rate, term, and down-payment assumption to the same purchase price. The values are illustrative — your actual lender will quote terms specific to your credit, the business, and the deal structure. But the relative differences are what matter at decision time.

When Each Structure Wins

• SBA 7(a) is the workhorse for goodwill-heavy acquisitions. 10% down, 10-year amortization, and you keep your capital for working capital and the unexpected. Higher rates than conventional but the leverage and term outweigh it for most first-time buyers.
• SBA 504 only fits real-estate-heavy deals (a business that comes with the building). Lower blended rate and 25-year amortization on the real-estate portion.
• Conventional requires more cash up front but the shorter term means you own the business outright sooner. Useful if you have the capital and the business cash-flows strongly.
• Seller note bridges the gap. Rarely the primary financing on its own, but combined with SBA 7(a) or conventional it can reduce your cash-to-close significantly. SBA rules require a 24-month standby on any seller note that counts toward your equity injection.

What This Comparator Does Not Show

Closing costs (3–5% of the loan), the SBA guarantee fee on 7(a) loans (varies by loan size, currently 0–3%), and working capital you should hold separately for the first six to twelve months. Your total cash-to-close is the down payment plus these items.