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Year ago when I owned restaurants we looked into doing an SBA loan to buy a larger one and one of the things I learned from there was that there are industries that they support and ones they didn’t (at the time they wouldn’t do Micro Breweries due to the high failure rate).
I believe they would loan up to 70% of the purchase and start up costs but the business had to have legitimate (tax based) financials that were 135% profit above loan requirements. For example if your annual payments were going to be 50,000.00 you’d have to prove that over the last 3 years the business made 67,500.00 in profit each year over the last 3 years.
Also, at the time the seller could contribute owner financing to cover part of the down payment. So if the purchase price was 300,000 and the SBA would loan you 210,000, you could put 50k down and have the seller hold back 40k. I like the option of owing the seller some money in case there were lies and/or omissions in their sales pitch.
I think the rates are pretty good and the program is easier to use than a typical bank loan but you do have to have legitimate income that is large enough to cover your anticipated expenses.
It’s been 20 years since I researched this so if this interests you please don’t rely 100% on my comments and do update the post if there are corrections.
