SBA 7(a) loan drives strategic growth for automotive dealership
Introduction
Cornovus Capital arranged an SBA automotive dealership loan totaling $3.25 million to support the acquisition and working capital needs of a multi-location automotive dealer group. The financing provided a fully amortizing 10-year term under the SBA 7(a) program, enabling 90% business acquisition funding, inventory capital, and liquidity for operational growth.
The SBA automotive dealership loan was structured to create a single capital solution supporting both business acquisition and inventory funding. Cornovus Capital worked closely with the lender to deliver a streamlined execution with minimal equity injection, ensuring long-term affordability and compliance with SBA standards.
Through strategic structuring and full amortization, Cornovus Capital optimized borrower cash flow, reduced debt service costs, and provided the capital framework needed to expand market share and sustain growth across dealership operations.
Challenge
Meeting acquisition and liquidity objectives through a non-real-estate SBA structure. The borrower sought to acquire an existing dealership while maintaining working capital and inventory reserves. The transaction required 90% financing under the SBA 7(a) program, demanding precise balance sheet analysis and disciplined underwriting to support loan approval and long-term performance.
- Structuring 90% SBA 7(a) financing
- Balancing acquisition, working capital, and inventory funding
- Coordinating multi-location dealer assets under one SBA facility
- Maintaining liquidity to support operational continuity
- Delivering full approval within a 60-day close window
Solution: SBA automotive dealership loan structured for stability and growth
Tailored SBA 7(a) financing designed for acquisition, inventory, and working capital. Cornovus Capital structured a $3.25 million SBA 7(a) loan with a 10-year fully amortizing term and competitive market rate pricing. The loan funded 90% of the dealership purchase price, supported inventory financing, and provided working capital reserves to support post-closing operations.
The transaction adhered to all SBA 7(a) Business Loan Program requirements, providing an efficient, compliant, and cost-effective capital structure. Cornovus Capital coordinated with lenders, appraisers, and underwriters to deliver a seamless funding process while maintaining borrower liquidity for business growth initiatives.
- $3.25 million SBA 7(a) loan supporting business acquisition and operations
- 90% financing with zero real estate collateral
- 10-year fully amortizing term with a competitive market rate
- Funds allocated for acquisition, inventory, and working capital
- Full compliance with SBA 7(a) underwriting and eligibility standards
- Expedited lender coordination and closing under 60 days
Results
Driving dealership growth and financial stability. The SBA automotive dealership loan provided the borrower with 90% financing, strengthened operational liquidity, and established long-term stability through predictable amortization. The loan improved profitability, supported new inventory integration, and positioned the dealership for sustained market growth.
- Full business acquisition completed with 10% equity injection
- Strengthened liquidity and inventory flexibility
- Improved balance sheet stability and cash flow performance
- Enhanced lender relationship and future SBA eligibility
- Expansion-ready framework for dealership growth
For additional automotive industry insights, visit NADA Data. Explore more SBA and dealership financing examples in our Transaction Highlights archive.
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.
Our expertise spans SBA 7(a) and 504 loans, CMBS and LifeCo financing, private capital solutions, and structured debt strategies. By focusing on certainty of execution and closing assurance, we guide businesses and investors through complex financial landscapes, securing funding tailored to their long-term objectives.
Why partner with Cornovus Capital?
At Cornovus Capital, we understand that complex transactions require sophisticated financing solutions. Whether structuring business acquisitions, SBA financing, or working capital solutions, we deliver capital strategies designed for certainty and efficiency.
What sets us apart
- Specialized expertise in SBA 7(a) acquisition and working capital financing
- Proven results for dealership and franchise business acquisitions
- Advisory-driven underwriting and coordination for full SBA compliance
- End-to-end transaction management from qualification to closing
Contact Cornovus Capital
For dealerships and business owners seeking SBA financing for acquisition or expansion, Cornovus Capital delivers expertise, efficiency, and certainty. Our advisory approach ensures capital alignment across acquisition, liquidity, and operational growth strategies.
Email: info@cornovuscapital.com
Phone: 513-993-3044
Website: CornovusCapital.com