The requirements vary from lender to lender, but the SBA has a standard many underwriters adhere to, including:
- Whether the business income can repay the loan.
- Worth and quality of any collateral.
- Overall creditworthiness of the buyer.
- The amount of equity in the business.
- Any secondary sources of repayment—such as seller financing.
- Any additional enhancements, such as life insurance for the buyer, that guarantees the ability to repay the loan.