What is an SBA dealership loan?

An SBA dealership loan is typically SBA 7(a) financing used to fund eligible dealership acquisitions and business needs such as working capital and inventory-related liquidity, structured under SBA rules and lender underwriting.

Can SBA 7(a) financing be used for an automotive dealership acquisition?

Yes. SBA 7(a) loans may be used for eligible business acquisitions, including certain automotive dealership transactions, when the borrower and use of proceeds meet SBA eligibility requirements and the lender approves the structure.

How does SBA 7(a) financing support inventory and working capital needs?

SBA 7(a) proceeds can be structured to provide working capital and liquidity that supports operational needs. Inventory financing requirements depend on lender policy, collateral structure, and underwriting, and are structured to align with cash flow and operating stability.

SBA Dealership Loan | Automotive Dealership Acquisition & Working Capital

90% Acquisition Financing • Inventory Liquidity • 10-Year Fully Amortizing SBA 7(a)

SBA dealership loan overview

SBA dealership loan structured to support a dealership acquisition while preserving inventory liquidity and working capital flexibility. Cornovus Capital arranged $3.25 million of SBA 7(a) financing for a multi-location automotive dealer group, delivering 90% business acquisition funding with additional proceeds allocated for inventory capital and post-closing operating reserves.

This SBA dealership loan was designed as a single, fully amortizing 10-year structure—replacing fragmented funding sources with one compliant SBA execution. Cornovus Capital coordinated underwriting, lender requirements, and closing logistics to achieve a streamlined capital solution with minimal equity injection and clear compliance alignment.

The transaction followed SBA standards under the SBA 7(a) Business Loan Program, with proceeds structured to support acquisition, inventory funding, and working capital while improving predictability of debt service.

Challenge

The borrower required acquisition leverage while maintaining liquidity for inventory and ongoing operations. The financing needed to deliver 90% acquisition funding under a non-real-estate SBA structure, requiring disciplined underwriting and clear use-of-proceeds alignment to support approval and long-term performance.

Structuring 90% SBA 7(a) acquisition financing for a dealership purchase
Balancing acquisition, working capital, and inventory funding under one facility
Coordinating a multi-location dealer platform under a single SBA structure
Maintaining liquidity and operational continuity through closing and integration
Delivering full approval within a defined close window

Solution

Cornovus Capital structured a tailored SBA 7(a) facility designed for business acquisition, inventory capital, and working capital reserves. The loan combined 90% acquisition funding with liquidity planning and a fully amortizing term to support stability and affordability over the life of the debt.

$3.25MM SBA 7(a) facility supporting dealership acquisition and operations
90% financing with no real estate collateral required for the transaction
10-year fully amortizing structure designed for predictable debt service
Funds allocated for acquisition, inventory funding, and working capital reserves
Coordinated lender execution and underwriting to support closing certainty

The structure delivered an SBA-compliant capital solution that aligned acquisition leverage with day-one operating liquidity—supporting post-close integration and growth planning.

Results

The borrower completed the acquisition with high-leverage SBA financing, strengthened liquidity, and established long-term stability through predictable amortization. The transaction supported inventory integration and positioned the dealership platform for sustained growth.

Business acquisition completed with a minimized equity injection
Liquidity preserved for inventory and operational continuity
Improved balance sheet stability and predictable debt service
Strengthened lender positioning for future SBA execution
Expansion-ready framework for multi-location dealership growth

For additional automotive industry insights, visit NADA Data. Explore additional financing outcomes in our Transaction Highlights archive .

Related capital programs

Explore additional owner-occupied and growth financing options: SBA 7(a) program, SBA 7(a) 100% program, SBA 504 program, Conventional financing, Bridge program, CMBS program, and LifeCo program.

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About Cornovus Capital

With over 70 years of combined experience, Cornovus Capital is a trusted financial partner specializing in business financing, commercial real estate lending, and hospitality funding solutions. We design customized capital strategies that help businesses acquire, expand, and optimize operations, ensuring long-term growth and financial stability across multiple market cycles.

Our expertise spans CMBS and LifeCo financing, private capital solutions, structured debt strategies, SBA 7(a) and 504 loans. By focusing on certainty of execution, disciplined underwriting, and closing assurance, we guide businesses and investors through complex capital markets environments, securing financing aligned with long-term ownership and investment objectives.

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Exploring financing options for commercial real estate or business finance? Cornovus Capital delivers institutional execution — combining underwriting precision, credit modeling, and lender coordination to ensure transparency, speed, and certainty from term sheet to closing. Cornovus Capital delivers structured solutions, execution precision, and efficiency from application to closing.

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