How It Works
SBA Prequalified by LoanBud
The Power of SBA Prequalification
When selling your business, getting SBA Prequalified by LoanBud gives you a significant advantage in the marketplace. Our prequalification process evaluates your business against SBA lending criteria before you list, ensuring buyers know your business is already cleared for SBA financing.
Submitting Your Business Information
Simply complete our secure online form with basic information about your business and upload key financial documents. You'll need to provide:
3 years of business tax returns
Recent Year-to-date Profit & Loss income statement and balance sheet (within 60 days)
Optional: Business overview or offering memorandum
Sellers can submit directly or have your business broker complete the form on your behalf.
Our Evaluation Process
Our SBA loan specialists thoroughly analyze your financial statements to verify SBA eligibility. We ensure your business is stable or growing with a cash-positive net income, and we identify any potential concerns that might affect your future buyer's financing.
Within 2-3 business days, you'll receive your SBA Prequalification Status (if approved), along with detailed feedback on your financials and the maximum loan amount potential buyers could access.
Maintaining Your Prequalified Status
To keep your prequalification active throughout your listing period, simply update your financial statements every 30-60 days. Our team will review updated statements quickly to ensure your status remains current.
Eligibility Requirements
To qualify for SBA financing, your business should:
Be U.S.-based in an eligible industry
Show profitability with at least 1.25x Debt Service Coverage Ratio
Have clean, reconcilable financial statements
Be stable, transferable, and free of legal or tax issues
Why SBA Prequalification Matters
For Sellers:
Higher Visibility: Prequalified listings stand out to serious buyers
Better Valuation: Justifies your asking price with verified financials
Smoother Process: Reduces surprises during due diligence
Faster Closing: Financing is already lined up for qualified buyers
For Buyers:
Smarter Starting Point: Target pre-screened, cash-flowing businesses that are eligible for SBA financing. With prequalification in hand, buyers are seen as serious and credible.
Reduced Deal Risk: Because both the buyer and business have been prequalified, deals are more likely to close — reducing the risk of wasted time, money, and emotional investment.
Dedicated Loan Advisors: From deal structure to documentation, LoanBud's experienced team guides the buyer through each step of the SBA process — helping buyers navigate complexities and close with confidence.
Streamlined Financing Process: With one easy application and 40+ SBA lenders in our marketplace, LoanBud matches the buyer to the perfect lender every time. Buyers access a secure document portal and receive real-time updates to track their loan process.
Start your SBA business acquisition loan at https://apply.sbaloan.app/loanbud.
Broker Advantages:
Document Management: Brokers manage a jumble of documents between parties. A centralized platform consolidates it all in one place, in real-time.
Higher Likelihood of Closing: Prequalified buyers and listings minimize deal failure and accelerate timeline for closings.
Prequalified Buyers: We weed through the applicant pool to ensure brokers can focus on vetted, SBA prequalified buyers--most likely to close.
Stronger Listings, More Interest: SBA prequalification indicates financial health, boosting buyer demand and competition.
The LoanBud Pipeline Portal:
Track listings in one secure centralized system.
Real-time updates and deal status notifications.
Efficiently respond to underwriting questions and document requests.
