I know from being in the lending industry for the last 13 years there is just no one out there any good at funding business acquisition loans under 375K. Most banks won’t even consider doing these loans at all.

EXECUTIVE SUMMARY: Smaller acquisition deals under $375K are often ignored by traditional lenders, but this structure offers a faster, more efficient alternative that removes many of the usual barriers.

It’s just too much work for such a small reward when you take into consideration all the hoops you have to jump through to close the deal. All the underwriting that must be in perfect order for the SBA to guarantee the loan makes doing these smaller deals very difficult. Then on top of that, lenders usually assign the more inexperienced underwriters to those smaller deals creating more problems for everyone.

The Problem with Smaller Deals

Most lenders simply don’t want to deal with loans at this level. The time, effort, and compliance requirements don’t justify the return for them.

That’s why so many good deals in this range struggle to get funded.

A Different Approach Without the Usual Bottlenecks

What if there was a solution where the SBA did not have to get involved at all?

What if there was a lender who would fund these smaller deals with maximum efficiency and not have to appease all the requirements that are involved in the SBA lending process?

And here is the best part… Loans can close in weeks and not months.

Bringing a Solution to the Market

My friend Grant Ferguson who I have known for years called me the other day and told me he has finally put together a program to bring this type of lending to the marketplace.

Now, I know for a fact he had been trying to put this together for years so when he told me he finally had I was ready to go out to the marketplace with him full force.

Loan Structure Overview

Here are a few of the parameters below of the loan itself… but just remember these are unsecured loans based on:

• The credit-worthiness of the borrower
• The borrower’s ability to run the business
• The health of the business being purchased

Key Terms:

• Commercial unsecured loans up to $375,000 (up to $500K with credit enhancements)
• Close in weeks, not months
• 10–15% buyer cash required
• No personal real estate collateral – no tagging your residence
• Seller notes welcome (and encouraged)
• No reporting to personal credit
• Terms up to 6 years
• Rates: 14.49 – 18.49%

Key Takeaway

Smaller deals are often overlooked, not because they are bad opportunities, but because most institutions are not built to handle them efficiently. When the structure fits the deal, speed and execution become the advantage.

If you want to see more real-world deal structures, check out our commercial lending success stories.

Frequently Asked Questions

Are business acquisition loans under $375K hard to get?

Yes, many traditional lenders avoid smaller deals because the underwriting process is time-consuming relative to the loan size. This often makes it difficult for buyers to secure financing in this range.

Why do banks avoid smaller acquisition loans?

Smaller loans require the same level of underwriting and compliance as larger deals but generate less return for the lender. Because of this imbalance, many institutions choose not to pursue them.

What is the advantage of unsecured acquisition financing?

Unsecured financing removes the need for personal real estate collateral, which can make deals more accessible for buyers. It also simplifies the structure and can lead to faster closings.

How fast can these types of loans close?

Unlike traditional financing that may take months, these types of structures can close in weeks when all parties are aligned and the deal meets the necessary criteria.

What factors matter most for approval?

Approval is typically based on the borrower’s creditworthiness, their ability to operate the business, and the overall health and performance of the business being acquired.