SBA Funding Options Your Clients Should Know About
When Clients Ask About Business Loans
Business owners often come to their CPAs and advisors when they need money for growth, transition, or stability.
One client may want to buy a building. Another may want to acquire a business. Someone else may need working capital, debt consolidation, or a way to handle a partner or family buyout.
Most of the time, you may refer them to a banker you trust.
That can still make sense. However, your clients should also understand another option: SBA funding.
In this episode of Financially Fit Business, I talk with Dylan Carraway, senior loan officer at Live Oak Bank, about SBA 7(a) loans and how business owners use this program.
We discuss acquisitions, commercial real estate, succession planning, internal buyouts, partner buyouts, debt refinance, and working capital.
What Is the SBA 7(a) Program?
The SBA 7(a) program is often called the flagship loan program of the Small Business Administration.
Many business owners learned about SBA funding during the pandemic through PPP loans or EIDL loans. Still, the SBA has been around much longer than that.
Today, the 7(a) program helps fund small business growth and transition.
Dylan explains that both existing business owners and first-time business owners can use SBA 7(a) funding for practical business needs.
For example, they may use it to buy a business, purchase commercial real estate, support succession planning, fund an internal buyout, refinance debt, or add working capital.
Why This Matters to CPAs
CPAs often see the financial picture before anyone else does.
You know when a client wants to grow. You also know when cash flow feels tight, debt creates pressure, or ownership transition is getting closer.
That makes you an important part of the financing conversation.
Dylan explains that SBA lenders look closely at historical and projected cash flow. They usually start with three years of business tax returns, interim profit and loss statements, and balance sheets.
This is where CPAs can bring real value.
Clean financials help lenders understand how the business performed in the past, how it performs now, and whether it can support the proposed debt.
Clean Financials Make the Process Easier
Interim financial statements can get messy.
Owner compensation may not appear clearly. Cost of goods may need better allocation. One-time expenses may need an explanation. Partner buyouts and ownership transitions can also raise questions.
A CPA can help explain the numbers and clean up confusion before it slows the loan process down.
When CPAs get involved early, lenders gain more clarity and confidence in the financials.
That does not mean every loan gets approved. It does mean the conversation starts from a stronger place.
Loan Structure Matters
SBA funding is not one-size-fits-all.
Some business owners may want to preserve cash and finance more of the transaction. Others may prefer to put money down, lower the monthly payment, and improve the loan-to-value position.
The right structure depends on the client’s goals, cash position, and future plans.
That is another reason CPAs and advisors should join the discussion. The loan should support the business, not create more pressure than the company can handle.
Timing and the Right Lender
Dylan also explains why preferred SBA lenders matter.
A preferred lender can handle underwriting, approval, decisioning, and funding in-house. That can move the process faster than working with a lender that must send the full application to the SBA for review.
For many SBA opportunities, Dylan says underwriting and credit approval may take about seven to ten business days.
The full process, including closing, often takes about six to eight weeks when the client stays engaged and has the information ready.
The Real Opportunity for Advisors
SBA funding can help business owners grow, transition, acquire property, refinance debt, or prepare for succession.
For CPAs, the opportunity is not to become the lender. The opportunity is to know when SBA funding might make sense.
You can also help clients prepare the financial information lenders need to evaluate the opportunity.
If your clients ask about business loans, ownership transition, acquisitions, commercial real estate, or working capital, this episode will help you bring another option into the conversation.
Choose one thing you discover in this episode and implement it in your business. These ideas, tactics, and strategies help you make more money, have more free time, and give back.
People Also Ask
What is an SBA 7(a) loan?
An SBA 7(a) loan is a small business loan program that can help business owners finance acquisitions, commercial real estate, succession planning, partner buyouts, debt refinance, and working capital.
How can CPAs help clients with SBA funding?
CPAs can help clients prepare the financial information lenders need, including tax returns, interim profit and loss statements, balance sheets, and explanations for unusual financial activity.
What financial documents are usually needed for an SBA loan?
Lenders often start with three years of business tax returns, interim profit and loss statements, and balance sheets. They use these documents to review historical performance, current performance, and the business’s ability to repay the debt.
Can SBA funding be used for succession planning?
Yes. SBA funding may be used for succession planning, internal buyouts, partner buyouts, employee purchases, and other ownership transition situations.
How long does the SBA loan process take?
The timing varies by deal, but underwriting and credit approval may take about seven to ten business days. The full process, including closing, can often take about six to eight weeks when the borrower is actively engaged and the financial information is ready.
Why does working with a preferred SBA lender matter?
A preferred SBA lender can typically handle underwriting, approval, decisioning, and funding in-house. This can help the process move faster than working with a lender that must send the full application to the SBA for review.