Acquisition Power Calculator
Find out how much business you can acquire using SBA 7(a) and other acquisition financing. Answer a few quick questions about your finances and we'll calculate your acquisition range in under 2 minutes.
How much cash do you have available?
Include checking, savings, and money market accounts
Any retirement accounts?
401(k), IRA, Roth IRA. These can be used for acquisitions via ROBS
Stocks or brokerage accounts?
Publicly traded stocks, ETFs, mutual funds
Do you own real estate?
Primary residence, investment properties
Any outstanding debts?
Excluding mortgage (already entered)
Your Acquisition Snapshot
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(SBA financing maxes at $5M, maximum enterprise would max out at roughly $6M, this may differ and we can discuss on your call)
- Weighted Net Worth
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- Liquid Net Worth
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You qualify for SBA 7(a) acquisition financing.
Enter your details below to see your year-one cash flow estimates and equity injection breakdown.
You're in unsecured lending territory.
Your liquid net worth is under about $70,000. That is the Regalis Capital rule of thumb (not an SBA threshold) for when SBA 7(a) financing gets harder to qualify for. But that doesn't mean you can't acquire a business.
Your options:
- Unsecured business lending for smaller acquisitions
- Build your liquid position and revisit SBA in 6-12 months
- Explore creative deal structures with lower equity requirements
Regalis Capital can help you find the right path regardless of where you are today.
Your Full Results
Year-One Cash Flow Estimates
After debt service. Rough, conservative, upper-bound estimates.
Absentee Owner
You hire a manager and stay minimally involved.
- Low estimate
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- High estimate
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Semi-Absentee Owner
Limited hands-on involvement, roughly 10 to 15 hours a week.
- Low estimate
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- High estimate
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Owner-Operator
You run the business full time.
- Low estimate
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- High estimate
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Equity Injection Breakdown
SBA 7(a) loans require a 10% equity injection, not a down payment. On your top-end enterprise value of -, that is:
- Total Equity Injection (10%)
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- 5% Buyer Cash
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- 5% Seller Note on Full Standby (no principal or interest for the full term)
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Important Disclaimers
- These are rough, conservative, upper-bound estimates only
- Actual cash flows may be significantly lower
- This is not financial or investment advice
- Consult with qualified professionals before making investment decisions
Ready to find a business in your acquisition range? Regalis Capital helps you source, vet, and close deals from $100K to $5M+.
Speak To The TeamHow the acquisition math works
SBA 7(a) acquisitions require a 10% equity injection of the total project cost, not a down payment. The injection is 5% genuine buyer cash plus up to 5% as a seller note on full standby for the life of the loan. Total project cost includes the purchase price plus closing costs and any working capital.
Here is how that breaks down on a $350,000 purchase, the current median small business sale price.
| Line item | Amount |
|---|---|
| Total project cost (purchase price) | $350,000 |
| Equity injection (10%) | $35,000 |
| 5% buyer cash | $17,500 |
| 5% full-standby seller note | $17,500 |
| SBA 7(a) loan portion (90%) | $315,000 |
Worked example under SBA SOP 50 10 8, effective June 1, 2025. Closing costs and working capital add to the total project cost, which raises the 10% injection figure on a real deal.
Frequently Asked Questions
How much do I need to buy a business with SBA financing?
SBA 7(a) loans require a 10% equity injection. It is made up of 5% buyer cash and a 5% seller note on full standby for the life of the SBA loan. Full standby means no principal or interest for the full term. The 10% injection on a $1M acquisition is about $100,000 of total project cost: roughly $50,000 of genuine buyer cash plus up to $50,000 from a full-standby seller note. Because the 10% is measured on total project cost (price plus closing costs and working capital), the real cash floor is a bit higher. Your liquid net worth determines the maximum enterprise value you can target.
What is the difference between net worth and liquid net worth for SBA loans?
Weighted net worth includes all assets (cash, retirement, stocks, real estate, HELOC) adjusted by liquidity weights minus all liabilities, including your mortgage. For liquid net worth, real estate counts at 80% of its value minus the mortgage balance. That figure only lowers your liquid net worth when it is negative, which means you owe more than 80% of the home's value. Positive home equity is never added to liquid net worth. SBA lenders focus on liquid net worth to assess your ability to fund the equity injection.
What is the minimum equity injection for an SBA 7(a) loan?
The standard SBA 7(a) equity injection is 10% of the total project cost. This is NOT a down payment. It is made up of 5% buyer cash plus a 5% seller note. The seller note sits on full standby for the life of the SBA loan, typically 10 years, with no principal and no interest paid in that time. The seller note can cover at most half of the 10% injection. A note that is not on full standby does not count as equity (SBA SOP 50 10 8, effective June 1, 2025).
Can I use retirement funds to buy a business?
Yes. Retirement funds (401k, IRA) can contribute to your acquisition power. Through structures like ROBS (Rollover for Business Startups), you can use retirement funds as part of your equity injection without early withdrawal penalties. Our calculator weights retirement accounts at 90% of face value to account for accessibility factors.
What happens if I don't qualify for SBA financing?
Buyers with limited liquid funds may find SBA financing harder to qualify for. As a Regalis Capital rule of thumb (not an SBA threshold), we flag liquid net worth under about $70,000. Below that, you may need more cushion to fund the equity injection and keep cash on hand after closing. There are alternative paths including unsecured business lending, smaller acquisitions, or building your liquid position over time. Regalis Capital can help you explore the best path based on your specific financial profile.
Note: All calculations are estimates based on general SBA 7(a) acquisition math. Actual deal terms, lending requirements, and cash flow vary by business, market conditions, and lender. This calculator is informational only and does not constitute financial advice. Consult with a qualified advisor before making acquisition decisions.