Financing Your Acquisition: How to Choose a Bank & The Role of SBA Loans

Introduction

When acquiring a business, choosing the right banking partner is critical—and often feels like a compromise. Large national banks may offer technology and lending capacity, but they lack flexibility and personal attention. Smaller community banks provide relationships but often don’t have the sophisticated tools or SBA expertise your acquisition demands.

There’s a better way. This guide will show you how to select a partner that delivers both: advanced SBA financing capabilities paired with personalized guidance. By working with a bank that offers a hybrid model—combining streamlined technology with a dedicated SBA expert as your single point of contact—you can navigate the complex SBA 7(a) process with confidence to secure the funding you need to make your acquisition possible.

Key Takeaways

• A private business client model is the ideal solution: The best partner combines the sophisticated commercial lending capabilities of a large bank with the personalized, relationship-based support of a community institution.

• A Single Point of Contact is Non-Negotiable: This is the key differentiator for a streamlined process, ensuring you have a dedicated expert who eliminates the frustration of being passed between departments.

• SBA 7(a) Loans Are Key for Acquisitions: This specific loan program is designed to help entrepreneurs buy existing businesses, offering flexible terms and lower down payments.

• Demand a Sophisticated + Personal Approach: Your bank should provide modern technology (like treasury management) that is always backed by accessible, personal guidance from a banker you know and trust.

Choosing the Right Bank for Your SBA 7(a) Acquisition Loan

When financing an acquisition, your bank should be a strategic partner. SBA 7(a) loans are powerful tools, but they require expertise. Look for a preferred SBA lender with proven acquisition experience, advanced technology for efficiency, and a dedicated SBA expert as your single point of contact. Find a Bank That Understands Business:  You need a bank built to serve businesses—one that offers a full suite of services, from guiding you through SBA loan applications and eligibility requirements to assisting with documentation, underwriting, and closing. A partner that provides expert advice, streamlined processing, and ongoing support to help your business secure the funding it needs.  

• Insist on a Single Point of Contact: One of the biggest frustrations with traditional banking during the SBA loan process is being passed from person to person. At Bankwell, we eliminate that problem by assigning you a dedicated SBA expert who guides you through every step—from prequalification and application to underwriting and closing. This single point of contact ensures clear communication, faster turnaround, and personalized support for all your business needs, including establishing a deposit account.

• Choose a sophisticated + personal Approach: During the SBA loan process, you shouldn’t have to sacrifice efficiency for personal attention. The ideal banking partner combines advanced technology—streamlined applications, secure digital document uploads, and real-time status tracking—with a relationship-driven model that gives you direct access to an SBA expert. At Bankwell, we deliver this hybrid experience: the tools of a large institution paired with the personalized guidance you need to navigate every step confidentlyThe Role of SBA Loans When Financing an Acquisition

When acquiring a business, SBA 7(a) loans are one of the most effective financing solutions—designed to make complex deals achievable and accessible for entrepreneurs.

• SBA Loans Make Acquisitions Possible: SBA 7(a) loans are a game-changer for business acquisitions. With lower down payment requirements compared to conventional loans or lines of credit, they help you preserve critical working capital—giving you the flexibility to invest in growth and operations after the deal closes. This structure often turns an acquisition from a challenge into an achievable opportunity.

• SBA Loans Cover What Others Won’t: When acquiring a business, a significant portion of the purchase price often represents ‘goodwill’—the intangible value of reputation, brand, and customer relationships. Many conventional lenders refuse to finance goodwill or heavily discount its value, making deals harder to close. SBA 7(a) loans are specifically designed to include goodwill in the financing structure, ensuring you can secure the full value of the business you’re buying.

• SBA Loans Safeguard Your Cash Flow: One of the biggest advantages of SBA 7(a) loans for acquisitions is their long repayment terms. Extended timelines mean lower, more manageable monthly payments—helping you maintain healthy cash flow for operations, payroll, and growth initiatives after the deal closes. This flexibility is critical for ensuring your new business thrives from day one.

Frequently Asked Questions

What's the main difference between an SBA 7(a) loan and a conventional loan for an acquisition?  The key difference is the SBA guarantee. This guarantee reduces the lender’s risk, which allows for lower down payments and longer repayment terms—making acquisitions more accessible. Conventional loans and lines of credit often require much larger down payments and can be difficult to secure for deals involving significant “goodwill,” such as brand reputation and customer relationships.

What is "goodwill" and why is it hard to finance?  Goodwill represents the intangible value of a business. Unlike physical assets such as buildings or equipment, goodwill can’t be repossessed if a loan defaults, which makes many conventional lenders reluctant to finance it or they heavily discount its value. SBA 7(a) loans are designed to include goodwill in the financing structure, and an experienced SBA lender knows how to properly structure your loan to make the deal work.

What documents do I need to get a business acquisition loan?  SBA loans require a comprehensive documentation package to evaluate the deal properly. You’ll need a detailed business plan that explains how you will operate and grow the acquired business, along with financial projections for the next two to three years. Personal tax returns for the last three years are required for all owners with 20% or more ownership, as well as business tax returns from the seller for the same period. A signed purchase agreement or letter of intent outlining the terms of the acquisition is essential. You’ll also need current financial statements for the seller’s business. Additional supporting documents may include copies of licenses or permits, organizational documents for your business entity, and a list of assets included in the sale.

Why can't I just use a large national bank for an SBA loan?  You can—but the experience is very different. The SBA process is complex and requires close coordination. At a large national bank, you’re often placed in a national queue and passed between multiple departments, which can slow things down and create confusion. A partner like Bankwell takes a different approach: we provide a dedicated SBA expert as your single point of contact. This person guides you through every step—helping you build a strong application, navigate documentation, and move efficiently from approval to closing.

Conclusion

When financing an acquisition, your banking partner should be a strategic asset—not an obstacle. SBA 7(a) loans are powerful tools, but the process is complex and requires expertise. You shouldn’t have to choose between advanced technology and personal guidance. The future of SBA lending lies in a private business client model that combines both: streamlined digital tools for efficiency and a dedicated SBA expert who serves as your single point of contact. By partnering with a bank like Bankwell—one that understands acquisition financing and guides you through every step—you ensure your business has the support, flexibility, and resources it needs to succeed

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Book an appointment with the author, Ryan Winchester