Protectionclear
Financing is addressed
The LOI appears to include a stated financing path or contingency.
Have your attorney confirm the language matches your intended protection.← SBA Planning Suite
SBA LOI financing preflight
Before you sign. Make financing part of the deal.
Pressure-test the proposed deposit, financing protection, deadlines, and project assumptions—then take a cleaner list of questions to your lender and attorney.
01 / The proposed economics
Start with the commitment on the page.
Use the current draft—even if the numbers are still moving. This is an early-warning tool, not a contract analysis.
02 / The financing pressure points
Translate the LOI into plain English.
Choose the closest answer. “Not sure” is useful—it identifies a question that should be answered before the timeline starts.
Financing preflight87/ 100
03 / Your early-warning brief
Ready for a financing conversation
The outline is ready for a focused financing conversation. Confirm every assumption with the right professionals.
0critical
2review
8clear
Depositclear
Deposit protection is stated
The deposit appears refundable under stated conditions.
Confirm the conditions, notice process, and refund deadline with counsel.Timingclear
Closing window allows planning time
90 days gives the financing team a more workable starting window.
Confirm the actual underwriting, third-party, and closing steps with the lender.Timingclear
Due-diligence window is visible
30 days creates a defined review period.
Map financial, legal, operational, and financing review tasks to this window.Sources & usesclear
Working capital is in the project
A purchase price alone may not cover the cash the business needs after closing.
Estimate the operating cushion and confirm how it will be funded.Sources & usesreview
Transaction costs need a funding plan
Professional fees, lender costs, and other closing expenses can change the cash requirement.
Build a complete sources-and-uses schedule before relying on the headline purchase price.Structureclear
No seller financing assumed
A seller note can affect cash at closing, repayment, and lender structure.
Document the amount, payment terms, standby expectations, and seller consent.Structureclear
Property is not part of this transaction
A lease, assignment, or real-estate component can affect timing and underwriting.
Confirm occupancy, lease term, assignment, and landlord or real-estate dependencies.Coordinationreview
The lender conversation is preliminary
A high-level conversation is useful, but the current LOI terms may not have been reviewed.
Send the proposed economics and timeline for a financing-specific reaction.Diligenceclear
Core financials are available
Historical financial information can support an early cash-flow and valuation conversation.
Confirm the package is current, complete, and reconciled.Take these to the lender
- Transaction costs need a funding plan: Build a complete sources-and-uses schedule before relying on the headline purchase price.
- The lender conversation is preliminary: Send the proposed economics and timeline for a financing-specific reaction.
- What underwriting, third-party, and closing steps should the LOI timeline allow?
- Which sources-and-uses assumptions should be confirmed before signing?
Take these to your attorney
- Does the financing contingency protect me through the actual approval process?
- Exactly when can the deposit become nonrefundable, and what notice is required?
- Do the diligence, closing, and extension deadlines leave enough room for financing?
Why this preflight exists
Educational planning tool only. Not legal, tax, accounting, or lending advice; not a contract review, approval, commitment, or guarantee.SBA guidance on buying an existing business emphasizes due diligence, cash flow, and valuation. The 7(a) program may support a change of ownership and multiple business uses, but eligibility, structure, and underwriting remain lender-specific.