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SBA 7(a) Loan Rule Changes Now in Effect —

As of Sunday, June 1, 2025, the Small Business Administration’s revised 7(a) loan guidelines are officially in place. These changes signal a return to more traditional lending standards and will significantly affect the way SBA financing is structured for acquisitions moving forward.

At eCommerce Lending, we’re here to break down what’s changed—and how you can stay ahead of the curve.

🔍 Key SBA 7(a) Loan Changes:

• Stricter Underwriting Standards
  The previous “Do What You Do” guideline has been removed. Lenders are now required to apply traditional credit evaluations to all loan applicants.
• Seller Financing as Equity
  Seller notes only count as equity if they are on full standby for 10 years and do not exceed 50% of the required equity injection.
• Seller Notes Terms
  Balloon payments are no longer allowed. All notes must be fully amortized over 5 to 10 years. While standby is not required, it is still strongly preferred.
• Seller Retained Equity & Guarantees
  If the seller retains any ownership post-sale, they must personally guarantee 100% of the loan for at least 2 years.
• Credit Elsewhere Test
  Borrowers—or any owner with 20% or more ownership—may be deemed ineligible if they have significant liquid assets.
• SBA Guarantee Fees Return
  Guarantee fees are now reinstated for loans under $1 million.
• Ownership Eligibility
  All owners must be either U.S. citizens or Green Card holders. Foreign ownership is not permitted.
• IRS Tax Transcript Verification
  No exceptions—IRS verification is now mandatory for all applicants.

What This Means for Acquisition Buyers

While these updates may seem extensive, buyers working with eCommerce Lending can move forward with confidence. We’ve long operated with these standards in mind—so our process is already optimized for this new landscape.

Whether you’re early in your search or already under LOI, our team will walk you through how these changes impact your specific deal structure and funding strategy.

✅ Stay Ahead of the Curve

Need help navigating the new rules? Our consultative approach ensures you’re equipped with the clarity and confidence to close successfully—no matter how the rules evolve.

The Five Most Common Buyer Mistakes

What First Time Buyers Get Wrong About SBA Loans

SBA 7(a) loans are one of the most powerful tools available for buying a business, whether it's a brick-and-mortar operation, an online brand, or a service-based company. But if you're new to the process, it's easy to feel overwhelmed or fall into common misconceptions.

At eCommerce Lending, we've worked with thousands of first-time buyers across all industries. And time after time, we see the same misunderstandings that slow things down or lead to avoidable issues. Here’s what you should know upfront so you can move forward with clarity and confidence.

❌ Mistake #1: Thinking You Need Perfect Credit

You don’t need an 800 credit score to get approved. While good credit is important, lenders take a holistic view of your profile. They’ll also consider your liquidity, work experience, debt-to-income ratio, and how well you’re positioned to run the business you’re acquiring.

If your credit has a few dings, don’t assume you’re disqualified, just talk to us first. We can often find a path forward.

❌ Mistake #2: Waiting to Get Prequalified

Too many buyers wait until they’ve found a business before they start thinking about financing. That’s often too late.

Getting prequalified early helps you:
• Understand your budget
• Strengthen your offer
• Move faster when it counts

Even if you’re just starting your search, we recommend getting prequalified so you’re ready to move when the right deal comes along.

❌ Mistake #3: Underestimating the Cash You’ll Need

An SBA loan typically requires a 10 percent down payment. Some buyers assume that seller financing or outside capital will cover it, but that’s not usually allowed under current SBA rules.

You’ll need to show personal, verifiable funds, ideally in your name and seasoned for at least 60 days. We’ll walk you through exactly what counts and how to prepare.

❌ Mistake #4: Overestimating How Quickly the Process Moves

Many buyers are surprised by how much coordination and documentation the SBA loan process requires. While some deals move quickly, others can take significantly longer depending on the deal structure, responsiveness, and how prepared the buyer is.

The key is getting organized early. Having your documents ready and working with a team that specializes in business acquisitions can help avoid unnecessary delays. As we often say—time kills deals, so preparation matters.

❌ Mistake #5: Trying to Navigate the Process Alone

Many first-time buyers try to manage everything themselves or rely on a lender who doesn’t specialize in acquisitions. That often leads to confusion, missed steps, and deal fatigue. A dedicated acquisition lending team can make all the difference in getting to the finish line efficiently and confidently.

✅ How to Set Yourself Up for Success

The SBA loan process doesn’t have to be confusing. The key is getting expert guidance early and understanding how to prepare. Our team works with both first-time and experienced buyers to simplify the process, avoid delays, and close with confidence.

💬 Ready to Get Started?

We’ve helped thousands of buyers secure SBA financing for all types of business acquisitions, with a 98% approval rate and over $1B in deals closed.

Visit our website to fill out a quick form and schedule a call. We’ll guide you through every step.

From Prequalification to Closing, Here’s How to Keep Momentum on Your Side

How Buyers Can Speed Up the Closing Timeline

Buying a business is exciting, but the process can feel long and overwhelming. One of the most common questions we hear from acquisition entrepreneurs is, “How quickly can we close?”

On average, the SBA loan process takes 60 to 90 days from start to finish. While that may sound lengthy, much of the timeline is within your control. Buyers who prepare early and stay proactive can often close toward the lower end of that range. Remember the golden rule in acquisitions: time kills deals. The longer the process drags on, the greater the risk of losing momentum with sellers, lenders, or unforeseen issues.

Below are practical steps buyers can take to accelerate the closing timeline without cutting corners.

1. Get Prequalified Early

The biggest time-saver is starting with a prequalification. By sharing your financials upfront, lenders can quickly determine eligibility and flag potential issues. This not only speeds up the loan process but also gives you stronger negotiating power with sellers.

2. Assemble a Complete Document Package

One of the biggest causes of delays is missing or disorganized paperwork. Lenders can’t move forward until they have the full picture of your financials. At a minimum, you’ll need to provide items like your personal financial statement, tax returns, proof of income, and a business plan with projections. In reality, the list extends well beyond that.

At eCommerce Lending, we simplify this process by helping clients gather, organize, and package all required documentation before the deal is ever submitted to underwriting. This ensures your file is complete and presentation-ready, which helps underwriters move faster and keeps your acquisition on track.

3. Understand the Underwriting Timeline

Underwriting is where the lender reviews your financials, projections, and supporting documents in detail. This step typically takes 2–3 weeks. Timely responses and well-prepared documentation can prevent underwriting from dragging out and keep you moving toward closing.

4. Respond Quickly to Lender Requests

Underwriters often ask for clarifications, updated statements, or additional forms. Every day you delay responding adds to the timeline. Buyers who prioritize communication with their lender typically close weeks sooner than those who wait to reply.

5. Secure the Right Team Early

One of the most common reasons deals stall is because buyers don’t have the right team in place. Success in acquisitions requires more than just a lender. You need trusted advisors who understand the process and can move quickly.

At eCommerce Lending, we help our clients build that team. We connect buyers with experienced M&A legal representation, life insurance providers (a common SBA requirement), and the right lending partners from our extensive network. Having these relationships in place from the start keeps the process aligned and moving forward.

6. Be Flexible and Proactive

Sometimes unexpected challenges arise, such as appraisal delays or tax transcript issues. Buyers who stay flexible and proactive, anticipating requests before they come, can keep momentum going even when obstacles pop up.

Final Thoughts

Closing on a business acquisition does not have to take months. By preparing upfront, responding quickly, and surrounding yourself with the right team, you can cut down the timeline and move from accepted offer to ownership much faster.

At eCommerce Lending, we live by the saying time kills deals. Our role is to keep momentum on your side and make sure nothing stands between you and closing. With our experience, network, and hands-on guidance, buyers can move forward with confidence knowing their deal is progressing the right way and on time.