Our Mission is to Empower and Grow Small Businesses
We believe small businesses are the backbone of America. Our mission is to empower business owners, entrepreneurs, and freelancers to secure the capital they need to grow.
About the President of LoanBud, Burke Purcell
Burke began his lending career over 20 years ago. From residential to commercial loans, Burke built his reputation on finding creative solutions for his clients. LoanBud was a vision many years in the making: the chance to create a marketplace flexible enough to fit every entrepreneur’s capital needs. Burke’s industry tenure and track record have helped him attract top talent and assemble a network of over 100 lenders for LoanBud to utilize.
William Bennett, SVP, Sales Director
Melissa Buehner, VP, Business Lending Officer
Jon Rector – VP, Business Lending Officer
Angela Sharrett – VP, Business Lending Officer
Patrick Brassil – VP, Business Lending Officer
Rett Babb – VP, Business Lending Officer
Crystal Dreher – AVP, Loan Documentation Specialist
PLP status allows lenders to bypass the SBA and make credit decisions internally, which can save you weeks of processing time. Since PLP lenders have the authority to make credit decisions, we can get you an answer quickly and won’t drag you through the mud.
An SBA 7(a) business acquisition loan allows funding up to $5 million for purchasing an existing business or franchise using SBA-backed financing. When purchasing a business, most entrepreneurs do not have the cash on hand to pay the full value of the business, and SBA loans for business acquisition can provide up to 90% total financing. Banks consider business acquisition loans to be risky. By having the SBA guarantee the loan, it mitigates the risk for the lender, which increases the chance of your loan being approved.
If any of the following apply to you then you may be a good candidate for a business acquisition loan:
- You are looking to buy an existing cash flowing business
- You would like to buy out a business partner
- You want to open a new location with an existing franchise
- You want to acquire a competitor for strategic growth
Have a question about how you can use your business acquisition loan? Schedule a consultation with a LoanBud loan officer to receive a complementary analysis today.
SBA 7(a) business acquisition loans typically have a repayment term of 10 years, or up to 25 years if there is a real estate component. This allows for lower monthly payments compared to a typical term loan offered by a bank, which may have a repayment term of only 5 years.
Since banks generally view business acquisition loans as risky, those interest rates are normally higher than those offered by SBA-backed loans. The SBA caps the interest rate that lenders can charge, and most SBA loans are WSJ Prime plus a margin up to 3.00%.
It typically takes 45 – 60 days to close on a business acquisition loan, depending on the complexity of the deal. Working with a non-Preferred Lender Partner can add weeks onto this timeline, as non-PLP lenders must send your application to the SBA for approval.
In order to be approved for an SBA 7(a) loan, most lenders require the borrower to have a minimum FICO score of 620 – 680. Please contact us to discuss your circumstances.
One of the benefits of using SBA financing is the ability to receive capital for multiple business needs. Your SBA loan proceeds can be used for:
- Buying an existing business
- Purchasing a franchise
- Buying out a partner
- Working capital
- and More!
Have questions about how you can use a business acquisition loan? Talk to a LoanBud loan officer today to receive a personalized analysis.