How We Funded a $1,542,500 SBA 7(a) Startup with Real Estate—Even Though the Business Was Failing

Most people assume SBA 7(a) loans are only for thriving businesses or seasoned owners expanding into new territory. But what if we told you that you can use an SBA 7(a) loan to buy a business that’s actually declining—as long as you know what you’re doing?

That’s exactly what we just helped a client do.

The Background: Divorce Left the Business at 20% Capacity

The business in question was once thriving. But after the co-owners divorced, one of them ended up managing everything solo. The result? The business dropped to running at only 20% of its potential.

Despite this, our client saw the true value – and with his expertise, the business could return to thriving once more.

The Buyer: Industry Expert With a Proven Exit

Our borrower had previously owned a business in the same industry, which they successfully sold at a profit. That’s the kind of relevant operational experience SBA lenders love—and the kind of profile that makes buying a failing business not just doable, but smart.

The purchase included:

• The business’s equipment, supplies, client base, and brand name

• The real estate associated with the business

By acquiring the infrastructure and goodwill at a discount, our client positioned themselves to rebuild and scale from day one.

The Funding: SBA 7(a) Loan Backed by Projections

We structured a $1,542,500 SBA 7(a) loan that included real estate purchase and startup working capital. Even though the business was in decline, we got it done by:

• Leveraging our internal fund and affiliate lender network

• Using pro forma financial projections to demonstrate the business’s potential under new ownership

• Highlighting the borrower’s industry experience and strong cash position

Let’s be clear—this was a startup loan, but one with a strategic twist: the borrowers weren’t guessing. They had data, experience, and a plan.

When Experience Meets Opportunity, We Deliver the Capital

If you’ve:

• Sold a business and want to re-enter the space

• Have strong personal credit and plenty of cash

• And are a U.S. citizen or green card holder

…you may qualify for an SBA 7(a) loan that includes real estate, startup capital, and a fresh start.

Let’s talk.

Call us today at (888) 959-1648 or email info@comcapfl.com.

Or apply in minutes through our Loan Finder App—no uploads, no obligations.