Pillar

SBA Financing

SBA 7(a) financing is the primary funding mechanism for A/E/LS firm ownership transitions under $15 million in deal size, and it lets key employees come in with as little as 5% down. The program calls for a 10% equity injection. In some cases the buyer covers the full amount; in others it is split, with the buyer contributing 5% and the seller holding a short-term note for the other 5%, which is then paid off once the loan is funded. Banks look at debt service coverage ratio, backlog quality, and owner concentration before approving a deal. When the structure is right, SBA financing delivers 90 to 100 cents on the dollar to the seller at closing, with no contingent payments tied to future performance.

Learn how SBA financing works for A/E firm acquisitions→ESOP vs employee buyout→

SBA Financing

Common Deal Structures for A/E Firm Buyouts: SBA, Seller Notes, and Hybrid Models

Compare the most common deal structures for architecture and engineering firm buyouts. SBA 7(a), seller financing, hybrid models, and earnouts explained for both buyers and sellers.

SBA Financing

What SBA Lenders Actually Look For When Financing an A/E Firm Buyout

SBA lenders approve A/E firm buyouts based on DSCR, backlog, client mix, and management depth. Learn the 5 factors that determine if your deal gets funded.