Frequently Asked Questions

VerSquare is a vetted provider directory built for small business acquisitions and SBA lending. We help buyers find verified SBA lenders, M&A lawyers, loan brokers, due diligence firms, and buy-side advisors using real performance data and buyer reviews.

We verify providers using a combination of SBA government records, public licensing databases, and buyer-submitted reviews. For SBA lenders specifically, we track loan volumes, default rates, interest rate distributions, and approval timelines sourced directly from SBA data. This data-driven approach ensures our ratings are objective and grounded in verifiable records.

Yes, VerSquare is completely free for buyers. You can browse all provider categories, read reviews, compare performance data, and use our matching service at no cost. We earn revenue through advertising and provider partnerships, but providers cannot influence their reviews or ratings.

When you request a match, we review your specific needs — deal size, industry, location, timeline, and financing requirements — and connect you with 2-3 vetted providers who specialize in your type of transaction. Matches are typically delivered within 48 hours and the service is free.

Three key differences set us apart:

1. Real performance data — We track SBA loan volumes, default rates, and interest rate distributions from government records, not just self-reported claims
2. Buyer-verified reviews — Only buyers who have worked with a provider can leave reviews, ensuring authentic feedback
3. Acquisition focus — We specialize exclusively in the small business acquisition ecosystem, not general business services

An SBA 7(a) loan is a government-backed loan program designed to help small businesses access financing with favorable terms. For business acquisitions, SBA 7(a) loans offer up to $5 million in financing with down payments as low as 10%, interest rates tied to Prime + a spread, and repayment terms of up to 10 years (25 years for real estate). Browse our SBA lender directory to compare lenders by loan volume and performance.

Most SBA lenders require a minimum personal credit score of 680-700 for acquisition loans, though some lenders may consider scores as low as 650 with strong compensating factors. Beyond credit score, lenders evaluate your industry experience, the target business's cash flow (typically requiring a DSCR of 1.25x or higher), available collateral, and your post-closing liquidity.

SBA 7(a) loans are general-purpose business loans used for acquisitions, working capital, and equipment — up to $5M with flexible use of proceeds. SBA 504 loans are specifically for purchasing commercial real estate or major equipment — structured as a partnership between a lender and a Certified Development Company (CDC), typically with lower down payments for real estate. Most business acquisitions use 7(a) loans unless the deal is heavily real-estate focused.

Yes — business acquisition is one of the most common uses of SBA 7(a) loans. The SBA allows financing for purchasing an existing business, including goodwill, inventory, equipment, and real estate. You'll typically need a 10-20% down payment (equity injection), relevant industry experience or management skills, and a business that demonstrates sufficient cash flow to service the debt.

Focus on these factors when comparing SBA lenders:

1. Loan volume — Lenders with higher volumes in your loan size range tend to process faster
2. Default rates — Lower default rates suggest better underwriting and borrower support
3. Industry experience — Some lenders specialize in specific NAICS codes or industries
4. Geographic coverage — Confirm they lend in your target business's state
5. Processing speed — PLP lenders can approve without submitting to SBA individually

Our directory provides all of these data points for 955+ SBA lenders.

Yes — an M&A lawyer is essential for most acquisitions. They handle the purchase agreement, review and negotiate deal terms, identify legal risks during due diligence, structure the transaction (asset vs. stock purchase), ensure regulatory compliance, and manage the closing process. The cost of not having legal counsel typically far exceeds their fees. Browse our M&A lawyer directory to find attorneys with acquisition experience.

A loan broker shops your deal to multiple lenders simultaneously, which can save time and potentially get better terms through competition. Going directly to a lender gives you a single point of contact and avoids broker fees. Brokers are most valuable when your deal is complex, you're unfamiliar with the SBA lending landscape, or you want to compare multiple term sheets quickly. Direct lending works well when you have an existing banking relationship or a straightforward deal.

A due diligence provider investigates the target business before you finalize the purchase. The most common service is a Quality of Earnings (QoE) analysis, which verifies the seller's financial claims by examining revenue quality, expense normalization (add-backs), working capital trends, and customer concentration. Other services include operational due diligence, IT assessments, environmental reviews, and HR/compliance audits.

A typical acquisition follows these stages:

1. Search & Sourcing — Identify target businesses through brokers, marketplaces, or direct outreach
2. Initial Evaluation — Review financials, assess fit, and determine valuation
3. Letter of Intent (LOI) — Submit a non-binding offer outlining key deal terms
4. Due Diligence — Comprehensive investigation of the business (financial, legal, operational)
5. Financing — Secure SBA loan or other funding
6. Purchase Agreement — Negotiate and execute the definitive agreement
7. Closing — Transfer ownership, fund the transaction, begin transition

The entire process typically takes 3-6 months from LOI to closing.

A Letter of Intent is a non-binding document that outlines the proposed terms of a business acquisition — including purchase price, deal structure (asset vs. stock), financing contingencies, due diligence period, and closing timeline. The LOI signals serious interest and typically triggers an exclusivity period where the seller agrees not to negotiate with other buyers. Having an M&A lawyer review or draft your LOI is strongly recommended.

From signed LOI to closing, most small business acquisitions take 60-120 days. The timeline depends on due diligence complexity, SBA loan processing (60-90 days for standard 7(a)), lease assignment or negotiation, regulatory approvals, and seller transition planning. Deals with SBA Express loans or simpler structures can close faster, while deals with real estate, multiple locations, or regulatory requirements may take longer.

A Quality of Earnings report is a financial due diligence analysis that verifies the seller's claimed earnings. It examines revenue sustainability, expense add-backs and normalizations, working capital requirements, customer and vendor concentration, and trends in profitability. A QoE is typically prepared by a due diligence firm or CPA and costs $5,000-$30,000+ depending on the business complexity. Most SBA lenders require or strongly recommend a QoE for acquisition loans.

We verify reviews through multiple methods: reviewers must create an account, provide details about their transaction (deal type, timeline, approximate size), and attest that they had a genuine professional engagement with the provider. We flag and investigate reviews that appear suspicious, and providers can respond to reviews publicly but cannot have them removed unless they violate our content policy.

No. Providers cannot influence their reviews, ratings, or ranking through payment. While we offer advertising and featured placement options, these are clearly labeled and do not affect review scores or performance data. Our SBA lending data comes directly from government records and cannot be altered by providers.

Our SBA lending data is sourced from official Small Business Administration records, which are public government data. This includes loan volumes by lender, default and charge-off rates, loan size distributions, interest rate information, and geographic and industry breakdowns. We update this data regularly to ensure accuracy. You can explore this data for any lender in our lender directory.