Blueprint step 03
How Much Does It Cost to Buy a Business?
By Michael Freedman, Florida licensed business broker · Reviewed October 22, 2026The sticker price is only part of it. Here is every check you will actually write, and the total cash you need on day one.
Down payment
For an initial SBA acquisition, the minimum equity injection is 10% of total project cost, including the purchase price, closing costs and working capital. Up to half can come from a seller note on full standby for the life of the SBA loan, so buyer cash can be as low as 5%.
Professional fees
An attorney to review the purchase agreement and an accountant to verify the numbers. Budget $5,000 to $15,000 on a Main Street deal.
Closing and lender costs
SBA guarantee fees, bank packaging fees, appraisals, and lien searches. Often 2% to 4% of the loan amount, sometimes financeable.
Working capital
Cash to make payroll, buy inventory, and cover the gap between paying expenses and collecting revenue. The most commonly forgotten cost.
A realistic example
Say you buy a service business for $500,000 with an SBA loan. Add $10,000 in attorney and accountant fees, $15,000 in lender and closing costs, and $50,000 of working capital. Total project cost is $575,000. The 10% minimum equity injection is $57,500, with an SBA loan of $517,500 covering the other 90% if those costs are eligible and included. Lenders can require more than the minimum.
5% variant: a $28,750 seller note on full standby, with no principal or interest payments for the life of the SBA loan, can cover half the injection, leaving $28,750 in buyer cash.
Ways to shrink the cash requirement
- Negotiate seller financing. A seller note reduces the bank loan and sometimes the equity you must bring. See the seller financing guide.
- Ask for working capital in the loan. SBA loans can include working capital, turning a cash cost into a financed one.
- Buy a smaller first deal. A $250,000 business with the same percentages needs half the cash, and the experience is worth more than the size.
- Use retirement funds carefully. Rollover structures (ROBS) let some buyers use retirement savings without early withdrawal penalties, but they have real rules and risks. Talk to a specialist before touching them.
The test that matters
After all payments, does the business still pay you a living wage plus a return on your cash? Run your specific deal through the deal analyzer and the SBA payment calculator. If the deal only works under perfect conditions, it is not a good deal at any price.
Florida licensed business broker. 14+ years buying and selling businesses, 1,000+ evaluated, $100M+ in deals closed and advised on.
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