Key Takeaways
- Buying an existing business with proven cash flow is often lower risk than building from scratch
- SBA acquisition loans now require 100% US citizen/national ownership — eliminating the most common financing route for L-1 holders
- Bankable underwrites business acquisitions on the target company's existing cash flow and your management background
- Funding up to $3M covering purchase price, working capital injection, and transition costs
- Both asset purchases and stock purchases are eligible; ESOP structures evaluated case-by-case
Purchasing an existing US business is a strategic move that many L-1 visa holders pursue specifically because it accelerates the path to an established US business operation — often a factor in immigration planning. An existing business comes with cash flow history, an established customer base, trained employees, and proven systems. The financing challenge is that business acquisition loans have historically relied on SBA programs that now require 100% US citizen ownership as of March 2026.
Bankable provides business acquisition financing that evaluates the target company's historical revenue and EBITDA, your management track record (domestic or international), and the acquisition structure. We have funded acquisitions in manufacturing, professional services, food service, distribution, healthcare, and retail — across a wide range of transaction sizes.
How Business Acquisition Financing Works
A typical business acquisition is financed through a combination of: seller financing (the seller carries a note, typically 10–30% of the purchase price), a senior acquisition loan from Bankable (typically 50–70% of purchase price), and equity from the buyer (20–30%). This three-part structure is common whether or not SBA financing is involved, because sellers want some skin in the game from buyers and lenders want the seller aligned with a successful transition.
Bankable evaluates acquisition financing primarily on the target business's trailing 12-month EBITDA and our ability to confirm that the business can service the total debt load (seller note plus Bankable loan) from its operating cash flow with adequate coverage.
Key Acquisition Due Diligence
Before we approve acquisition financing, we review: 3 years of the target's financial statements (tax returns and P&Ls), the trailing 12 months of business bank statements, the business valuation or purchase price justification, key customer concentration risk (no single customer should represent more than 30% of revenue), employee retention agreements, and any material contracts or leases that transfer with the business. Owners transitioning away often create a fragile period — we evaluate how dependent the business is on the current owner's relationships.
Asset vs. Stock Purchases
Most business acquisitions by L-1 holders are structured as asset purchases (buying the business's assets, not the legal entity) because this provides cleaner liability separation. Stock purchases (buying the shares of the existing corporation) carry inherited liabilities. Bankable can finance either structure, though we typically require additional indemnification representations in stock purchase transactions. Review our acquisition financing overview and start your assessment at our Bankability Score tool.
Frequently Asked Questions
Yes. L-1 visa holders can legally acquire existing US businesses. Financing is the main challenge since March 2026, when SBA eliminated acquisition loans for non-citizens. Bankable provides business acquisition financing based on the target company's cash flow, requiring no citizenship or green card.
Bankable funds business acquisitions from $100,000 to $3,000,000. The loan amount is based on the target business's EBITDA and the total debt service capacity. Typical acquisitions are funded at 50–70% of purchase price from Bankable, with the remainder from seller financing and buyer equity.
We typically require 3 years of the seller's business tax returns, trailing 12 months of bank statements, profit and loss statements, a current balance sheet, and a copy of the purchase agreement. For larger transactions, an independent business valuation is helpful.
Seller financing is when the seller accepts a promissory note for part of the purchase price, to be repaid over time from the business's cash flow. It is common because it demonstrates the seller's confidence in the business's ability to continue performing, aligns incentives during the transition, and fills the gap between bank financing and the full purchase price.
We calculate the target business's EBITDA (earnings before interest, taxes, depreciation, and amortization) and then determine how much total debt the business can service at a 1.25x or better coverage ratio. The Bankable loan plus any seller note must fit within this debt capacity.
An asset purchase buys specific assets of the business (equipment, customer lists, inventory, goodwill) without inheriting the entity's liabilities. A stock purchase buys the ownership of the entire entity, including its history of liabilities. Most buyers prefer asset purchases for liability protection.
Buying a US business can actually support your L-1 visa status by demonstrating active business operations in the US. It does not automatically change or extend your visa. Make sure the business aligns with the specialized knowledge or managerial activities your L-1 classification describes.
Business acquisition financing at Bankable typically closes in 14–21 business days from completed application, assuming due diligence documents from the seller are available. Complex transactions may take longer. We can issue a conditional commitment letter within 48 hours to support your purchase agreement timeline.
Distressed business acquisitions are more complex and require a clear turnaround plan. Bankable evaluates these on a case-by-case basis. If the business has a structural problem that you have identified a solution for, and you have the management experience to execute, we may still finance the acquisition at a lower LTV.
We have financed acquisitions in food service, manufacturing, distribution, professional services, healthcare, retail, automotive, construction, and technology. Any industry with documentable cash flow history is a candidate. We evaluate each acquisition on its own merits.