Can I get an SBA-backed bank loan to acquire a restaurant?


Often only 20% down required

Often only 20% down required                   

Restaurant Businesses

 To start with, yes! We have had clients do exactly that.

When buying an existing business, if the records are good, your credit is reasonable, and you can show that you are likely to be a good leader of the business you wish to acquire, you may be able to get an SBA loan. That means you can buy an existing business for 20% down, and sometimes as low as 15% or 10% down depending on the bank and the circumstances.

Small business loans allow individuals to attain Legacy Investment Parity (LIP). LIP allows you to invest a certain amount such as $100,000 and, after paying all expenses, including the banknote the business will provide at least that initial investment amount, which in this example means you can take home $100,000, an annual DE. Seller’s Discretionary Earnings (DE) or Adjusted Net generally refers to the amount of money a single owner who actively manages the business full-time could take home yearly.

NOTE: We stated ‘one working owner,’ not earnings from multiple family members working.

While only a very small amount of businesses (less than 7.5% on our last survey) that are on the marketplace can provide this type of return, they are certainly worth taking a closer look at.

Visit for details or visit your local bank.