Table Of Contents
What Is An SBA Loan?
An SBA loan is a small business loan backed by the U.S. Small Business Administration.
The SBA does not lend you money directly. Instead, it works with banks and lenders to reduce their risk.
This means lenders are more willing to approve loans for small business buyers, even if they don’t have a perfect financial record.
The most common type of SBA loan for buying an e-commerce business is the SBA 7(a) loan.
This loan can go up to $5 million, and you can use it to buy an existing business, including one that operates entirely online, e.g., an e-commerce business.
Using SBA loans to purchase an e-commerce business comes with the following benefits:
Lower down payments: Most SBA lenders only require 10% to 20% down. This means you could buy a $500,000 business with just $50,000 to $100,000 of your own money.
Longer repayment terms: SBA loans usually have 10-year terms. This helps keep monthly payments lower and gives you time to grow the business.
Reasonable interest rates: As of mid-2025, SBA 7(a) loans typically have interest rates between 10% and 12%, depending on the lender and your credit score.
Access to financing when banks say no: Because the SBA reduces the lender’s risk, you can often get approved even if your credit or experience isn’t perfect, as long as the deal makes sense.
NOTE that in the fiscal year 2024, the SBA backed $56 billion in financing, which represents a 7% rise from the prior year (2023), and issued over 100,000 loans. (Source).
Keep in mind that a growing number of these loans go toward online and service-based businesses.
We Help You Buy / Build, Manage and Scale E-commerce Brands for an EXIT
E-commerce Simplified for Busy Individuals – We handle the buying, building, and scaling, so you can focus on what matters.
Growth-Focused Strategies – From sourcing to marketing, we drive growth and prepare you for a profitable exit.
Expertly Managed Exits – We build a high-value brand designed for a Lucrative exit.
What Makes An E-Commerce Business Eligible for an SBA Loan?
We have just said that you can purchase an established e-commerce store with an SBA loan. But…NOT every e-commerce business qualifies for an SBA loan.
To be eligible, the e-commerce brand you wish to acquire must meet these basic rules:
It must be a real, U.S.-based bu
siness. The seller should show tax returns, profit-and-loss statements, and a valid business license if required.
The business must be profitable. SBA loans are meant for businesses that make money. If the business loses money, lenders will reject the deal.
The site must have a clear track record. Lenders will want to see at least 2–3 years of stable financial records. They want proof that the business works, even if ownership changes.
No heavy reliance on one customer or product. If 80% of revenue comes from one customer or one product, the business will look too risky to lenders.
Transferable operations. The business must be able to run without the current owner. If the owner is the brand or handles everything, lenders may decline the loan.
In short, the business must be real, profitable, and stable. You also need to show that you can run it well enough to keep it going.
What Do You Need to Qualify for the SBA Loan?
Getting an SBA loan isn’t easy, but it’s very possible if you plan ahead. And this involves knowing all the key requirements in advance.
Here’s a list of key requirements for you to apply for SBA Loan for an e-commerce business purchase:
A solid personal credit score. Most lenders want a credit score of at least 680. Some may approve you with less, but a strong score helps a lot.
Industry or business experience. You don’t need to be an e-commerce expert, but you should show that you can run this type of business. Even owning a Shopify store or managing online sales for a company counts.
Down payment money. As mentioned, you’ll need to bring about 10% of the purchase price. You can use cash, gifts from family, or even investor funds (with limits).
A good business plan. Lenders want to see how you plan to run and grow the business. Your plan should show where money will come from, what risks you see, and how you’ll handle them.
The business’s financial records. You’ll need to provide 2–3 years of tax returns, profit-and-loss statements, and bank records. If the seller won’t share these, walk away.
Your personal finances. Expect to submit your tax returns, a personal financial statement, and a list of debts and assets.
We can all agree that the paperwork is not fun, but it’s necessary. The more organized you are, the faster the process goes for you.
Steps to Prepare for an SBA Loan Application
Below, we have broken down the key steps to prepare for an SBA loan application for your business acquisition funding:
Step 1. Find the Right E-Commerce Business
You should start by going through e-commerce businesses for sale listings to find the perfect site to acquire.
During your search, focus on key areas like sales history, profit margins, and niche stability.
If need be, you can hire a broker to help you verify traffic and earnings.
Step 2. Prepare a Business Plan
Next, you’ll need to come up with a solid business plan. This should outline how you will run and grow the site. You should include crucial info like revenue projections, marketing plans, and team structure. Lenders will use this plan to judge your competence.
Step 3. Submit Your Loan Application
To apply for an SBA loan for an e-commerce business, you’ll need to gather six months to two years of tax returns, profit and loss statements, and balance sheets.
You should also include the purchase agreement. Don’t forget to check your credit score (lenders prefer a score of 680 or higher).
Once you’ve got these key requirements, you can then go ahead and apply through an SBA-approved lender.
Step 4. Underwriting and Approval
After making the application, you just need to wait for the lender to review your credit score, collateral, and business plan.
The lender will also verify the site’s financials.
This step can take 30 to 90 days, during which you will respond to questions, adjust your plan, and await final approval.
Step 5. Closing and Funding
If you’re approved, then you’ll be required to sign loan documents.
The lender will fund an escrow account, and the seller will receive the funds at closing. You then assume control of the e-commerce business and begin payments.
Managing the SBA Loan and Site Post-Purchase
After you take over the e-commerce business ownership, your next focus should be on setting up a repayment plan.
The typical term for a 7(a) loan is up to 10 years for equipment or 25 years when real estate secures the deal. Most e-commerce purchases sit in a 10-year term.
You will be required to pay both principal and interest each month.
Remember, you’ll need to plan a cash flow that will help you cover your loan payment, site expenses, and any new marketing.
As you continue running the business, be sure to track key metrics, like conversion rate and average order value.
This will help make sure you meet the projections you made in your business plan.
Regular reviews will also help you adjust tactics and stay on track.
We Help You Buy / Build, Manage and Scale E-commerce Brands for an EXIT
E-commerce Simplified for Busy Individuals – We handle the buying, building, and scaling, so you can focus on what matters.
Growth-Focused Strategies – From sourcing to marketing, we drive growth and prepare you for a profitable exit.
Expertly Managed Exits – We build a high-value brand designed for a Lucrative exit.
Post-Acquisition Tips for Success
As a beginner acquisition entrepreneur, you may think that all you have to do is pick an e-commerce business that looks profitable, apply for a loan to fund its acquisition, and that’s it!
But that’s not correct…
If you want to become successful in this acquisition field, you first want to ensure you pick a site in a niche you understand.
Depending on what skill set you possess, you should be able to easily spot risks and opportunities.
We also advise you to keep your expenses lean at first. Reinvest the profits into marketing and site upgrades.
Build an email list to boost repeat sales.
Test new products and offers in small batches.
And lastly, keep good records. Good records help you make informed decisions and also support future lending needs.
Frequently Asked Questions:
Let’s take a closer look at some of the most commonly asked questions regarding buying established e-commerce businesses with SBA loans:
Can you get an SBA loan for an e-commerce business?
Yes. You can use SBA 7(a) or microloan programs to fund an e-commerce business purchase. To qualify for this loan, your site must meet SBA eligibility rules and show stable income. You apply through an SBA-approved lender with a business plan and financial records.
Can you get an SBA loan for an online business?
Yes. The SBA treats online businesses like any small business. You just need a solid plan, at least two years of personal tax returns, and proof of revenue to qualify for the loan. An SBA lender reviews these before approving a loan.
Can you purchase a business with an SBA loan?
Yes. You can buy an existing business using an SBA 7(a) loan. The loan covers acquisition costs, working capital, and other expenses. You submit a purchase agreement, business plan, and financials to an SBA lender.
Can you get a loan to buy an e-commerce business?
Yes. You can secure funding through SBA 7(a) or other lender programs. You need site valuation, revenue history, and a clear plan. A lender uses this information to approve a loan that covers the purchase price and related costs.
Final Thoughts
Buying an e-commerce business with an SBA loan can be a smart move. It lets you get into a cash-flowing business with less of your own money upfront. But it’s not a shortcut. You’ll need to pick the right business, prove you can run it, and work with a lender who understands e-commerce deals. With the right plan, you can use an SBA loan to build long-term income and work for yourself. Just make sure the numbers make sense before you sign anything.
Need help finding great e-commerce deals? If yes, join our Acquisition Partnership program, where we guide you through buying your online store and then help you grow it 2-4×. And the best part? When you’re ready to exit, we’ll help you sell it for the highest profit.
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