Every year around Thanksgiving, I get the same text. A buyer has found a business, the seller wants it closed by December 31, and they want to know if I can make it happen.
My answer depends on what day they’re texting me.
The math works backward
A well-packaged SBA loan closes in about six weeks. That clock starts when the lender has every document, not when you sign the application.
The last week of December is a gamble, with title companies and sellers on holiday. So aim for mid-December. Count back six weeks, take out Thanksgiving, and allow a couple of weeks to pull the package together.
You land at the end of October.
This year there’s a second date
Last fall, the government shut down for 43 days and the SBA stopped approving new loans. Deals that already had SBA approval still closed. Everything else waited, and some buyers lost their sellers.
Congress has funded the government through December 11. I’m not predicting another shutdown. But if your loan is approved before that date, nothing in Washington can stall it.
Same deal, two calendars
Picture two buyers going after the same business.
The first gets me a complete package by October 30. The loan is approved before Thanksgiving and closes in mid-December.
The second starts gathering documents after Thanksgiving. Approval can’t come until after December 11. The closing slides into the new year, the lender wants full-year financials that won’t be ready until spring, and the seller starts taking other calls.
Same business. The only difference was the calendar.
One more thing changed on October 1
Under the SBA’s new rules, first-time business buyers need 1.25x debt coverage on what the business actually earned. Projections don’t count anymore. If your deal was borderline in September, run the numbers again before you sign anything.
Let me run it for you
I’ve been packaging SBA loans since 1982. Text me the basics and I’ll run a free analysis and tell you whether a year-end close is realistic. If it isn’t, I’ll say so and we’ll pick a date that works.
Text me at (214) 726-9000 or email pierce.pavbank@gmail.com.
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