I Became the Client: Buying My Own Business with an SBA Loan

For years, I've helped entrepreneurs buy businesses using SBA financing. I've guided clients through underwriting, due diligence, negotiations, and closing hundreds of times. But recently, I experienced the process from the other side of the table—I became the borrower.

The experience reinforced something I've always believed: the best advisors are the ones who have personally walked the path they're asking others to take.

From Podcast Listener to Business Owner

One of the more rewarding moments throughout this journey was learning that a banker decided to buy a business after listening to my podcast. The conversations we have on the My SBA Loan Pro Podcast are intended to give buyers practical, real-world advice—not theory. Seeing someone take action because of that content is exactly why I continue producing it.

If you're considering buying a business, I encourage you to watch the episode below.

The Acquisition Process Wasn't Just Financing

Many people assume obtaining the SBA loan is the difficult part. While financing is certainly important, it's only one piece of a successful acquisition.

Before closing this transaction, I:

• Performed a detailed financial analysis of the business.
• Conducted multiple site visits.
• Met with management before taking ownership.
• Evaluated operational risks and opportunities.
• Negotiated directly with the seller.

After careful analysis, we agreed to a purchase price of 3.5x EBITDA, without requiring a seller note. The structure made sense for both parties while maintaining a healthy capital structure.

I Handled My Own SBA Loan

As an SBA lender and advisor, I didn't hand my file off to someone else.

I assembled the loan package, submitted it, worked directly with underwriting, answered lender questions, satisfied conditions, and guided the transaction all the way through closing.

It reminded me just how much work every acquisition requires behind the scenes.

That's exactly why I can confidently guide my clients through the process—I know every document, every delay, every lender request, and every challenge because I've experienced them personally.

Working Capital Matters More Than Most Buyers Realize

One of the most overlooked components of buying a business is determining the proper amount of working capital.

Too little, and the business struggles immediately after closing.

Too much, and you're paying interest on money you don't need.

After thoroughly evaluating the operation, I established the working capital requirement before closing. Looking back, the estimate proved to be remarkably accurate and gave the business exactly what it needed during the ownership transition.

Closing Isn't the Finish Line

Many buyers think the hard work ends once loan documents are signed.

In reality, closing is just the beginning.

During the franchise conversion, I spent three to four weeks on-site, working alongside:

• Contractors
• Employees
• Vendors
• Municipal agencies
• Franchise representatives

Managing the operational transition firsthand gave me even greater appreciation for what new business owners experience after taking over an existing company.

A Stable Transition

Today, the business has successfully transitioned into new ownership and has stabilized.

Like many bankers, I take a conservative approach to investing. Rather than immediately spending the income generated by the business, I've reinvested earnings back into long-term wealth building while continuing to focus on sustainable growth.

Owning a business provides a completely different perspective than simply financing one.

Why This Matters to My Clients

When clients work with ThinkSBA and SBA Central, they aren't simply working with someone who understands SBA guidelines.

They're working with someone who has:

• Purchased a business using SBA financing.
• Negotiated purchase agreements.
• Completed financial due diligence.
• Managed underwriting.
• Closed the transaction.
• Led operational transition after closing.
• Determined real-world working capital needs.
• Experienced the challenges that every acquisition entrepreneur faces.

That perspective allows me to anticipate problems before they happen and help buyers make better decisions throughout the acquisition process.

Buying a business is one of the biggest financial decisions you'll ever make. Having an advisor who has personally lived the experience can make all the difference.

Ready to Buy a Business?

If you're planning to acquire a business with SBA financing, start by educating yourself before submitting an offer.

The My SBA Loan Pro Podcast covers business acquisitions, SBA lending, due diligence, underwriting, real estate financing, and practical lessons learned from real transactions. Every episode is designed to help buyers avoid costly mistakes and navigate the acquisition process with confidence.

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