Buying an existing business is one of the fastest ways to step into ownership and start generating income right away. Instead of building from scratch, you get established customers, staff, systems, and cash flow from day one.
But for many buyers, the biggest question isn’t what business to buy — it’s how to fund it.
Traditionally, entrepreneurs have turned to SBA loans for small business acquisition. These government-backed loans are popular for their low interest rates and extended repayment terms. But as many buyers discover, they also come with serious trade-offs: slow approvals, strict requirements, and limited flexibility.
At Grammont Enterprises, we believe opportunity shouldn’t wait for paperwork. That’s why our private lending programs help entrepreneurs close acquisitions in weeks — not months.
The Appeal of SBA Loans for Business Buyers
There’s no denying the Small Business Administration (SBA) offers valuable programs to help entrepreneurs access capital. For acquisitions, the SBA 7(a) loan is the most common option.
SBA 7(a) Highlights:
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Loan amounts up to $5 million
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Competitive interest rates
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Longer repayment terms (10+ years)
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Lower down payments than many traditional loans
That all sounds great on paper — until you look at the process.
The Downside: Delays, Red Tape, and Missed Opportunities
SBA loans for small business acquisition are not fast.
The average approval and funding process takes 8–12 weeks, sometimes longer if additional documentation or collateral reviews are required.
Here’s why:
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You must provide personal and business financials, tax returns, and a detailed business plan.
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Many loans require a personal guarantee and sometimes even collateral.
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After bank underwriting, the application still needs SBA approval before funding.
By the time the deal is ready to close, the seller may have moved on, the opportunity may be gone, or your buyer position may have weakened.
That’s the harsh truth about SBA loans: they move at the government’s pace — not the market’s. And as we saw during the recent U.S. government shutdown, that pace can grind to a complete halt.
When federal agencies pause operations, SBA loan processing stops entirely — leaving borrowers in limbo for weeks or months. Deals collapse, sellers move on, and opportunities disappear while applications sit untouched.
For entrepreneurs trying to close in Q4 or meet tax deadlines, that kind of uncertainty isn’t just inconvenient — it’s costly.
Private Lending: Funding That Moves at Your Speed
Private lenders like Grammont Enterprises take a different approach. We focus on the strength of your acquisition — not on slow federal paperwork.
With our private business lending programs, most clients move from application to funding in 10–15 business days.
Here’s how we do it:
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Streamlined application process — minimal red tape, fast evaluations.
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No SBA approval needed — our private capital means direct decisions.
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No personal guarantee required — protect your personal assets.
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Flexible deal structures — tailored to fit your acquisition’s needs.
That means while other buyers are still waiting on SBA paperwork, your deal could already be closed, funded, and generating profit.
Grammont’s 90/10 Funding Model
For many buyers, the 90/10 Funding Model is the game-changer.
Here’s how it works:
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Grammont funds up to 90% of your project or acquisition cost.
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You provide 10% equity or contribution.
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If you don’t have the full 10%, we can help source or structure it.
This model makes it possible to acquire established businesses without tying up all your capital — and without waiting months for an SBA decision.
Real-World Example
Imagine you’re purchasing a business listed for $2.5 million.
You approach a bank for an SBA 7(a) loan — they estimate 10–12 weeks for approval, pending tax reviews and collateral verification.
Meanwhile, with Grammont Enterprises, you could:
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Submit your project for review this week
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Receive approval in under two weeks
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Close and fund your acquisition before the end of the month
That speed can make all the difference when sellers are fielding multiple offers — especially in Q4, when year-end tax planning and deal deadlines create urgency.
When Private Lending Makes the Most Sense
Private funding is often the best fit if you:
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Need to close quickly on an acquisition opportunity
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Don’t meet SBA’s strict collateral or credit requirements
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Want to avoid personal guarantees
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Are pursuing a larger acquisition ($1M–$100M+)
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Have international investors or complex ownership structures
In short — if your deal can’t wait, private lending gets it done.
The Bottom Line
SBA loans for small business acquisition can be a great fit for long-term planning — but not for entrepreneurs who need speed and flexibility.
At Grammont Enterprises, we help business buyers secure private funding solutions that match their momentum. From our 90/10 Funding Model to large-scale private loans, we’re here to help you move fast, close strong, and start earning right away.
Don’t wait for red tape to clear.
Your opportunity won’t.