The truth about getting approved for an SBA loan

Happy Tuesday!

A question that comes up constantly from people exploring their first acquisition:

“How hard is it to actually get an SBA loan?”

It’s a fair question, and there’s a lot of misinformation out there about it.

Some people assume the approval process is so difficult that it’s basically out of reach for anyone without a business background.

That’s simply not true, and today, I’m going to share why.

Community Spotlight

Whitney joined Acquisition Ace in August while on maternity leave with her third child.

Just 9 months later, she closed on a $2M commercial cleaning company in Las Vegas, putting only $90K out of pocket (including all fees and QOE).

She brought on family investors, negotiated $150K in working capital from the seller, and structured the deal to generate over $300K in cash flow after debt service. That’s over 200% ROI in year one while keeping maximum flexibility with three kids under five.

She went from corporate entertainment executive to business owner without sacrificing time with her family.

👉 Want the same kind of guidance that Whitney got (which can help you close your first deal faster)? Book a call with our team here.

What the Bank Actually Looks At

To get pre-qualified for an SBA 7(a) loan, there are three main things lenders want to see:

1. A credit score above 600.

This is the baseline.

If you’re below it, you may still be able to qualify, but you’ll likely need to put up more collateral to compensate.

2. A solid employment or business history.

The bank will want to see your last three years of tax returns, and your W2s if you’re currently employed.

They’re just confirming that you’re a stable, reliable borrower.

3. A Personal Financial Statement.

This is essentially a snapshot of your net worth, meaning your assets (home equity, retirement accounts, investments, cash) minus your liabilities (loans, debts)…

And gives the bank a clear picture of where you stand financially.

From there, the process has additional steps, but the initial qualification bar isn’t as high as most people expect.

(Inside Acquisition Ace, members get hands-on guidance through every step of the SBA loan process. If you’re curious whether our community is a good fit for you, book a call with our team here.)

The Part Most People Get Wrong

The bank’s primary concern is whether the business you’re buying can generate enough cash flow to cover the loan payments.

If you’re bringing a well-run business to the table with consistent revenue, strong margins, and a capable team in place, the bank will be far less concerned about your lack of prior business ownership experience.

The business makes the case, and you just have to present it properly.

What This Looks Like in Practice

Inside Acquisition Ace, we’ve worked with students from all kinds of backgrounds - teachers, engineers, military veterans, corporate employees - many with zero prior business ownership experience.

Every single one of them has been pre-qualified for an SBA loan at some level.

Not because they had impressive credentials, but because they brought strong deals to the table and knew how to present them correctly.

And that’s absolutely a skill you can learn.

If you’d like to learn how to do the same…

The Acquisition Ace community can help you do just that.

We help thousands of members go through the process of acquiring their first business, and cover everything you need to know to be successful.

To see if it’s a good fit for you…

👉 Book a call with my team here.