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.