SBA 7(a) loans
The most flexible SBA program: business acquisitions, partner buyouts, expansion, working capital, equipment and owner-occupied real estate, up to $5 million.
Typical useEstablished businesses and buyers of a business
Commercial & Business Financing · New York
Commercial capital, structured around the business.
Financing advisory and loan brokerage for business owners, investors and the CPAs who advise them. I look past the rate to cash flow, flexibility, risk and where the business needs to be five years from now.
The lowest rate isn’t always the best financing decision.
A loan is one piece of a larger capital decision. Amortization, interest-only periods, prepayment terms, seller financing and maturity dates can matter more to a business than a quarter point of rate. My work is to find the structure that fits the operating reality, then the lender that will fund it.
Explore
How I can help
01
CalculatorBuying a business? See what price its cash flow can support with SBA financing.Try it
How I work
Four steps from the first conversation to the closing table.
Read more 02Financing programs
SBA, conventional, multifamily, bridge and construction financing.
Read more 03Illustrative scenarios
How structure, not just rate, changes the outcome of a deal.
Read more 04For CPAs and advisors
What happens when you refer a client, and what lenders ask for.
Read more
How I Work
From the first conversation to the closing table
One advisor through the whole process, coordinating with your CPA and attorney rather than working around them.
01
Understand the business
Cash flow, tax returns, add-backs, existing debt and the goal behind the request. The structure starts here.
02
Structure the capital
Leverage, amortization, interest-only periods, seller notes and maturities, weighed against risk and flexibility.
03
Match the lender
SBA lenders, community and regional banks, or private capital, chosen for the deal’s profile and timing.
04
Manage to closing
Package preparation, lender questions, appraisal and environmental reports, and clear updates to everyone involved.
Have a financing need in mind? A short conversation is the best place to start.
Discuss a financing need
Financing Solutions
Capital for owners, operators, investors and developers
More than twenty-five financing programs across government-guaranteed, conventional, bridge and construction lending. The right fit depends on the business, the property and the plan.
01
Government-guaranteed business loans
Longer terms and lower down payments, backed by federal guarantee programs.
SBA Express loans
Smaller SBA loans with a streamlined approval process and faster access to capital.
Typical useWorking capital and modest expansion needs
SBA 504 loans
Long-term, fixed-rate financing for owner-occupied real estate and major equipment, with a low down payment.
Typical useBuying or building the facility a business operates from
USDA Business & Industry loans
Government-guaranteed financing for businesses located in eligible rural communities, including larger loan sizes.
Typical useManufacturers, processors and rural employers
Rural energy financing
Loans for renewable energy systems and energy-efficiency upgrades for rural businesses and agricultural producers.
Typical useSolar, efficiency and energy-cost reduction projects
Industry-focused programs
Programs designed around specific business types, including franchises, car washes, gas stations and convenience stores, liquor stores, professional practices and veteran-owned businesses.
Typical useOwners in specialized industries
02
Conventional commercial and business lending
Bank financing for operating companies and commercial property.
Owner-occupied commercial real estate
Purchase or refinance the office, warehouse, clinic or facility your business operates from.
Typical useProfessional practices, distributors, contractors
Investment property loans
Long-term financing for office, retail, industrial, mixed-use and other income-producing property.
Typical useCommercial real estate investors
Fixed-rate permanent loans
Long-term, amortizing financing for stabilized commercial and multifamily property.
Typical useOwners seeking predictable payments
Commercial & industrial loans
Term loans for expansion, equipment, technology and vehicles, structured around the company’s cash flow.
Typical useOperating businesses investing in growth
Working capital lines of credit
Revolving facilities that smooth cash flow, fund inventory and support day-to-day operations.
Typical useSeasonal and receivable-heavy businesses
Specialty and middle-market finance
Larger, customized facilities for growth, recapitalization and strategic expansion.
Typical useLower-middle and middle-market companies
03
Multifamily financing (5+ units)
Capital for apartment buildings, from acquisition through stabilization and long-term hold.
Small balance agency multifamily
Long-term, fixed-rate agency financing for smaller apartment buildings.
Typical useStabilized 5+ unit properties
Multifamily bridge and value-add
Short-term financing to acquire, renovate and reposition apartment buildings under a business plan.
Typical useInvestors improving occupancy and rents
Stabilization and lease-up loans
Bridge financing that carries a property through lease-up until it qualifies for permanent debt.
Typical useNewly completed or recently renovated buildings
Bridge-to-agency
Bridge financing designed from the start to refinance into long-term agency debt once the property stabilizes.
Typical useValue-add plans with a defined exit
04
Bridge and transitional loans
Speed and flexibility when timing, property condition or a business plan doesn’t fit a bank yet.
Commercial bridge loans
Short-term financing for acquisitions, refinances, partner buyouts and properties in transition, with fast execution.
Typical useTime-sensitive or transitional deals
Bridge-to-permanent
One relationship that carries a property from bridge financing to long-term permanent debt.
Typical useInvestors who want a planned exit
Cash-out bridge
Short-term liquidity from an existing commercial property’s equity.
Typical useFunding the next acquisition or project
Large opportunistic bridge
Larger, complex transitional loans for unique assets and situations.
Typical useSizable or non-standard transactions
Net-lease retail loans
Financing for single-tenant, net-leased retail property.
Typical useOwners of NNN-leased buildings
Condo inventory loans
Financing secured by unsold units in a completed condominium project, giving developers time to sell.
Typical useDevelopers repaying construction debt
05
Construction and development
Capital from ground-up through completion, with draws tied to progress.
Ground-up construction
Financing for new multifamily, build-to-rent, condominium, industrial and commercial projects.
Typical useExperienced developers and sponsors
Construction-to-bridge
Construction and bridge financing combined into one loan with one set of documents and a lower blended cost.
Typical useProjects that will lease up after completion
Substantial rehabilitation
Funding for major renovations, repositioning and site development.
Typical useValue-add and adaptive reuse projects
Project finance
Capital for real estate, energy and infrastructure development projects.
Typical useLarge-scale development and energy projects
06
Structured and special situations
Creative capital when a conventional structure isn’t available.
Note-on-note financing
Financing secured by an existing mortgage note, providing liquidity to the note holder.
Typical useLenders and note investors
Rescue and solution capital
Customized capital for recapitalizations, maturities, partner disputes and other complex situations.
Typical useProperties or businesses facing a deadline
Programs are offered through third-party lenders and are subject to each lender’s credit approval, underwriting and guidelines. Availability, terms and eligibility vary and may change without notice. Empire Bridge Capital does not arrange residential mortgage loans.
Lender Relationships
The right capital source for each deal
Deals are placed with third-party lenders selected for the borrower’s profile, the property and the timeline.
SBA lenders
Preferred lenders for 7(a) and 504 financing, including acquisitions and owner-occupied real estate.
Community and regional banks
Conventional commercial mortgages, lines of credit and relationship-based lending.
Private and bridge capital
Speed and flexibility for transitional properties, tight timelines and complex situations.
Have a financing need in mind? A short conversation is the best place to start.
Discuss a financing need
Illustrative Scenarios
How structure changes the outcome
Examples of the questions that shape a commercial financing decision. They are illustrations, not client results.
Owner-user · Warehouse
Buying the building, with the seller as a partner in the financing
- Situation
- A distributor wants to buy its warehouse. The seller is willing to carry a note, and the buyer wants low payments for the first five years while the business invests in racking and inventory.
- Structure considered
- A bank first mortgage with a partial or full interest-only period, a subordinate seller note, and a seller-note maturity set after the bank loan’s so both don’t come due together.
- Why it mattered
- Interest-only preserves cash today but leaves the full balance to refinance later. Getting the maturities and prepayment rights right protected the business from a forced refinance.
Professional practice · Office
SBA or conventional for a practice buying its next location
- Situation
- A multi-location practice wants to own its newest office instead of leasing it, and is comparing quotes from several lenders.
- Structure considered
- An SBA loan with a lower down payment and longer amortization, compared side by side with a conventional bank loan that needs more cash at closing but carries fewer fees.
- Why it mattered
- The cheaper-looking quote is not always cheaper. Down payment, guarantee fees, prepayment terms and liquidity left in the business all belong in the comparison.
Acquisition · Operating business
Financing the purchase of an established company
- Situation
- An experienced manager wants to buy the company where they work. The owner is retiring and open to some seller financing.
- Structure considered
- SBA acquisition financing combined with buyer equity and a seller note, sized to the company’s historical cash flow rather than projections.
- Why it mattered
- Debt service coverage decides these deals. Clean financials and a CPA-supported view of add-backs often matter as much as the purchase price.
Franchise · SBA 7(a)
Buying into a franchise with limited liquidity
- Situation
- A corporate manager wants to open two locations of an established franchise but has only a portion of the startup cost in cash.
- Structure considered
- SBA 7(a) financing covering build-out, equipment, initial inventory and working capital, with the franchise brand’s track record supporting the underwriting.
- Why it mattered
- The structure kept the down payment manageable and preserved cash for the first months of operation, which is when most new locations need it.
Multifamily · Value-add
Repositioning a 24-unit building, then locking in long-term debt
- Situation
- An investor is buying an older apartment building with below-market rents and units that need renovation.
- Structure considered
- A short-term multifamily bridge loan to fund the purchase and renovations, designed from the start to refinance into long-term agency financing once occupancy and rents stabilize.
- Why it mattered
- Planning the exit before closing mattered. The bridge terms, renovation budget and lease-up timeline were sized to the permanent loan the property would need to qualify for.
Construction · Build-to-rent
Ground-up development without two separate closings
- Situation
- A developer plans a new build-to-rent community and expects a lease-up period after construction is complete.
- Structure considered
- A construction-to-bridge loan that funds construction through progress draws, then converts to bridge financing at completion under one set of loan documents.
- Why it mattered
- One loan avoided a second closing, a second set of fees and refinance risk at the most uncertain point in the project, between completion and stabilization.
Partnership · Commercial bridge
Buying out a partner on a tight deadline
- Situation
- Two partners own a mixed-use building. One wants out within sixty days, and the remaining owner can’t arrange bank financing in time.
- Structure considered
- A short-term commercial bridge loan to fund the buyout quickly, followed by a refinance into long-term permanent financing once the ownership change is complete.
- Why it mattered
- Speed came at a higher short-term cost. Weighing that cost against losing the building or a forced sale made the bridge the right tool for a temporary problem.
Rural business · USDA
Expanding a manufacturing plant in a small community
- Situation
- A food processor located outside a metropolitan area needs a larger facility and new equipment to meet growing demand.
- Structure considered
- A USDA Business & Industry guaranteed loan for the real estate and equipment, with an energy-efficiency component evaluated under a rural energy program.
- Why it mattered
- Rural location was an advantage, not an obstacle. The guarantee supported a larger loan and longer terms than a conventional bank loan alone would have offered.
Condominium · Inventory loan
Giving a developer time to sell the last units
- Situation
- A condominium project is complete and most units are sold, but the construction loan is maturing with several units still on the market.
- Structure considered
- A condo inventory loan secured by the unsold units, repaying the construction lender and allowing the remaining units to sell at market prices.
- Why it mattered
- Without it, the developer faced discounting units to meet the maturity. The inventory loan turned a deadline into a sales period.
Seasonal business · Working capital
Smoothing cash flow through an uneven year
- Situation
- A landscaping and snow-removal company earns most of its revenue in a few months but carries payroll and equipment costs all year.
- Structure considered
- A revolving working capital line sized to the seasonal cash cycle, with equipment financed separately on a term loan matched to its useful life.
- Why it mattered
- Separating short-term needs from long-term assets kept the line available for its real purpose and avoided financing trucks with revolving credit.
Scenarios are hypothetical and for illustration and educational purposes only. Terms, structures and outcomes vary by borrower, property and lender.
Have a financing need in mind? A short conversation is the best place to start.
Discuss a financing need
Acquisition Calculator
What price can the business support?
Lenders size an acquisition loan from the cash flow the business leaves after paying its new owner. Enter the numbers to see the largest SBA 7(a) loan and purchase price that cash flow can carry.
Largest supported purchase price
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- Cash flow available for loan payments
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- Largest annual loan payment
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- Largest loan
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- Buyer's down payment at that price
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- Price as a multiple of cash flow
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At the asking price
- Loan at your down payment
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- Annual loan payments
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- Coverage (DSCR)
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Guide
Talk through your numbers
How to use this calculator
The calculator works backward from cash flow, the way an SBA lender does. It answers one question: how much debt can this business repay, after paying its owner, with a cushion the lender is comfortable with? Seven steps to get a reliable answer.
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Start with cash flow you can document
Choose SDE (seller's discretionary earnings) if the figure includes the owner's pay, or EBITDA if a paid manager already runs the business. Enter the yearly figure.
Use the number the tax returns support, not just the broker's listing. Lenders underwrite from returns, and each add-back, such as a personal car or a one-time expense, needs proof.
If the last three years differ widely, run the calculator with the lowest year as well as the average.
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Pay yourself first
With SDE, enter the salary you need to live on while you run the business. Lenders subtract a fair market salary before they test the loan, so a figure that is too low only flatters the result.
With EBITDA, the salary field disappears, because the manager's pay is already counted as an expense.
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Set the loan terms
Down payment: the cash you put in. SBA rules often call for about 10% of the project from the buyer; confirm the current rule with your lender.
Rate: enter a lender's quote. SBA 7(a) rates are usually prime plus a margin and often adjust.
Term: 10 years for a business purchase alone; up to 25 years when the purchase includes the building.
Coverage (DSCR): cash flow divided by loan payments. 1.25 is a common minimum; some lenders ask for more.
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Read the headline number
The largest supported purchase price is what the cash flow can carry at your terms. It is a financing limit, not a valuation: a business can be worth more or less than this figure.
Check the multiple of cash flow beside it. A price far above the multiples for similar businesses usually signals a stretch, whatever the loan math says.
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Test the asking price
Enter the seller's price. The calculator shows the loan at your down payment, the yearly payments and the resulting coverage.
If coverage is at or above your target, the cash flow supports the price. If it falls short, the page shows the gap and three ways to close it: negotiate the price, bring more cash, or ask the seller to finance part of it with a note.
A seller note paid during the SBA loan adds its own payments to the coverage test. A note on standby, with no payments for a set period, does not.
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Stress-test the deal
Raise the rate by one or two points and cut cash flow by 10 to 15 percent. If the deal still covers at about 1.15x or better, it has room for a slow year or a rate increase.
Lenders run similar tests. A deal that only works on the best-case numbers is the one most likely to be declined or cut down.
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Remember what it leaves out
The calculator sizes the acquisition loan only. A full plan also covers working capital after closing, closing costs and the SBA guaranty fee, your personal debts and reserves, and taxes.
Lenders also weigh your industry experience, credit, liquidity and collateral. Treat the result as a starting point for the conversation, not an approval.
A worked example
| Annual cash flow (SDE) | $400,000 |
| Less the buyer's salary | −$100,000 |
| Cash flow available for loan payments | $300,000 |
| Divided by 1.25x required coverage | $240,000 a year |
| Loan those payments repay at 10% over 10 years | $1,513,423 |
| Largest supported price with 10% down | $1,681,581 (4.2x) |
At a $2,000,000 asking price, the loan would be $1,800,000 with payments of about $285,000 a year, which is 1.05x coverage. The buyer would need to close a gap of about $318,000 with a lower price, more cash down, a seller note, or a combination.
For illustration and educational purposes only. This is not an offer, a commitment to lend or a guarantee of financing. It uses a fixed-rate monthly payment for simplicity; SBA 7(a) loans are often variable-rate. Lenders also review the buyer's experience, credit and liquidity, the business's tax returns, collateral, and current SBA rules, including the 7(a) maximum loan of $5,000,000. A seller note can help close a gap, but if it is paid during the SBA loan its payments count in the coverage test.
For CPAs and Advisors
A financing resource that complements your advice
Your client relationship stays yours. I handle the financing and keep you informed, so you can introduce me with confidence.
- You make the introductionA short email or call with the client’s goal is enough to start.
- I review the full pictureReturns, interim financials and debt, with your view of the add-backs where it helps.
- You see the optionsWith the client’s permission, I share the structures under consideration and the tradeoffs.
- You stay in the loopUpdates at each milestone, from term sheet to closing, without extra work on your side.
Have a financing need in mind? A short conversation is the best place to start.
Discuss a financing need
Start a Conversation
Tell me about the business and what you’re trying to accomplish
A short description is enough. I’ll follow up to talk through the situation before anyone pulls credit or collects documents.
Anastasios Zervas
Commercial & Business Financing Advisor
347.248.8019 · tassos@empirebridgecapital.com
