Financing Information

Stonemill Partners has preferred lenders available for you to connect with regarding the financing of an acquisition. One of the more popular financing methods for engineering/construction/architectural firms is SBA backed financing available from many banks.

Stonemill Partners has expertise in SBA backed financing and can work with you to accomplish this.

SBA Financing Information and Example:

Acquisition Financing with SBA Backed Loans

SBA backed Business Loans provides low interest business financing and long-term, secure rates. The flexible lending requirements and minimum down payments allow businesses to grow through acquisition affordably.

Due to the government backing on the loan from the U.S. Small Business Administration, lenders will approve SBA loan requests with lower down payments, lower interest rates, longer repayment terms, and easier qualifying criteria than conventional bank loans.

For more information on SBA backed funding please contact us so that we can direct you to one of the banks that we regularly work with. We, at Stonemill Partners, are well versed in SBA backed funding and can walk you through the steps and process of applying for the funding for an acquisition of an engineering or architectural practice.

The good news is the requirement for the down payment from the buyer is 10% of the total purchase price (see example below). There are other components of the financing which is why we suggest you contact us. You can make an acquisition and grow your business significantly with this method.



Company A is acquiring Company B for $1 million. Company A has decided to put 60% or $600k down and issue a $400k promissory note, to the seller, for the difference.

In this case, Company A would bring 10% of the total purchase price to closing, or $100k. Company B is required by the SBA, to hold a minimum of 15% of the total purchase price in a promissory note if the total purchase price is over $500k. In this case, Company B is holding a promissory note for 40% of the total purchase price. The bank will loan the balance, or in this case $500k.

Note: The structure of SBA backed loans varies from transaction to transaction. At a minimum, the SBA requires 10% injection of cash by the buyer, a 15% promissory note held by the seller and 75% financed by the SBA backed bank financing. In this case the seller gets 85% of cash at closing (75% + 10%).

Many of the deals we are involved in, vary in percentage of cash received by the seller, at closing. These vary from 50% down to 85% down (as in the example above). Promissory note percentages vary along with this.


Acquisition/Purchase Price
10% Down from the Buyer
15% Promissory Note – Seller
85% Bank Financing
 Acquisition/Purchase Price $1,000,000


Note: Banks, many times, will include working capital in the total loan amount. This does vary depending on the needs of the business, the debt servicing capability and the borrowing capacity.