How do I qualify for an SBA loan to acquire an accounting firm?

Yes—you can qualify for an SBA loan to acquire an accounting firm if you meet the SBA's baseline standards plus your lender's accounting-specific requirements.

Check your estimated rate and terms in 2 minutes—no credit hit.

The specifics

Most SBA lenders require a personal credit score of 680 or higher to qualify for an accounting firm acquisition loan. However, lenders specializing in accounting practices will sometimes approve borrowers at 640 if your business shows strong revenue, stable cash flow, and a clear path to retain the target firm's clients.

Time in business: You must have operated your own accounting practice for at least 2 years. If you're a CPA working for another firm or in-house, most lenders will not approve you for a firm acquisition until you've established your own practice and its track record.

Cash flow and profitability: Your firm must show positive EBITDA (earnings before interest, tax, depreciation, amortization) for at least the past 2 years. Lenders model whether your current cash flow plus the acquired firm's cash flow can cover both the loan payment and your operating expenses. For a typical acquisition, lenders want to see at least 1.25x debt service coverage ratio (DSCR)—meaning your annual cash flow is 25% above what you owe on the loan each year.

Revenue threshold: According to the SBA, there is no minimum revenue requirement for eligibility. However, in practice, most lenders will not finance an acquisition under $150,000 in total purchase price, and accounting-focused lenders typically look for target firms generating $200,000+ in annual revenue to justify the loan amount and overhead.

Down payment: Plan on 10–20% of the purchase price. If you're buying a $500,000 firm, expect to put $50,000–$100,000 down. Your down payment shows the lender you have skin in the game and reduces their risk.

Qualification & edge cases

If you're below a 680 credit score but above 640, get a co-signer—typically a spouse or business partner with a stronger score—or wait 3–6 months and focus on improving your score by paying down revolving debt and ensuring all payments are on time.

If you're a W-2 employee at another firm and want to acquire a practice, you'll need to start your own CPA practice first (even a small one—bookkeeping clients, tax return preparation for 5–10 clients, or fractional CFO work). Build 2 years of operating history and tax returns before applying. This is a common path; many CPAs start solo or part-time while still employed, then transition to full-time ownership and acquisition once they hit the 2-year mark.

If the target firm is struggling (declining revenue, client attrition, or unclear financials), expect higher scrutiny. Lenders will want to see a detailed integration plan showing exactly how you'll stabilize and grow the book. Bring references from CPAs who have successfully integrated firms, or consider accounting firm acquisition financing from a specialist lender rather than a generalist bank.

If you're buying from a retiring partner or family member, the relationship is not a problem, but you must still show independent cash flow and credit. Do not assume the seller will carry any portion of the note; SBA loans require the entire purchase price to be financed, and seller notes are not allowed under SBA 7(a) rules.

Background & how it works

An SBA loan is a business loan guaranteed by the U.S. Small Business Administration. The lender assumes most of the risk (the SBA covers about 85% if you default), which is why SBA rates are lower than conventional bank loans. SBA loan rates in 2026 typically range from 8–10%, depending on your creditworthiness, the loan term, and market conditions.

For accounting firm acquisitions, the most common product is the SBA 7(a) loan, which caps at $5 million and can be used to purchase another business, refinance existing debt, or fund working capital. Term loans for tax preparation businesses and general accounting practices have become faster to arrange in 2026; several lenders now offer pre-approved programs for CPA firms.

The SBA does not lend directly—you apply through a bank or credit union that is an SBA-approved lender. Lenders like Sunwest Bank and Live Oak specialize in accounting practices and understand the nuances of your industry—client concentration risk, seasonal revenue, staff retention post-acquisition. Specialist lenders often approve faster (10–15 business days vs. 3–4 weeks at a generalist bank) because they don't need to educate themselves on accounting firm metrics.

When you apply, you'll submit your personal tax returns (2 years), your firm's financials and bank statements (3 months recent), the target firm's financials (if available from the seller), your CPA license or professional credentials, and a brief acquisition plan. The lender will verify your credit, check with your accountant or prior employers, and run the debt service numbers.

Bottom line

You can qualify for an SBA accounting firm acquisition loan with a 680+ credit score, 2+ years of your own operating history, and documented cash flow to cover the loan payment. Get your rate and estimated monthly payment in 2 minutes—no credit-score hit—from an SBA-approved lender.

Disclosures

This content is for educational purposes only and is not financial advice. accountingfirmloans.com may receive compensation from partner lenders, which may influence which products are featured. Rates, terms, and availability vary by lender and applicant qualifications.

Sources

• U.S. Small Business Administration — Terms, conditions, and eligibility
• Live Oak Bank — Loans for Accounting and Tax Firms
• Sunwest Bank — Tailored Banking for Accounting Firms & Accountants
• NerdWallet — SBA Loan Rates June 2026
• CPA.com — CPA Business Funding Portal Adds Term Loan Financing Option
• Lendio — Current SBA Loan Interest Rates May 2026