Professional services financing.

Professional services firms — CPAs, attorneys, engineers, architects, consultants — are one of the strongest SBA borrower profiles. Recurring revenue, high margins, low capital intensity. But the deals themselves have specific quirks around goodwill, restrictive covenants, and partner buy-in structures.

Scenarios I work through in this industry

Practice acquisition

Buying an established professional services firm. SBA 7(a) with typical 10%-15% equity injection. Deal is mostly goodwill (client relationships) vs. hard assets — lenders comfortable with high-goodwill deals are the right target.

Partner buy-in / buy-out

Buying into or out of a partnership. SBA 7(a) change-of-ownership structure. New rules under SBA SOP 50 10 8.1 apply post-October 1, 2026.

Owner-occupied real estate

Buying the office building your firm occupies. SBA 504 typically best if you can meet the 51%+ owner-occupancy threshold; conventional CRE otherwise.

Working capital / expansion

Cash flow smoothing during rapid growth, hiring, or geographic expansion. SBA 7(a) working capital up to 10 years or bank lines for the strongest firms.

Merger / rollup

Combining two firms into one entity. SBA 7(a) with change-of-ownership + real estate + equipment potentially all in one transaction depending on structure.

What I actually bring to your deal

Professional services acquisitions are heavy on goodwill (client relationships, brand, team) and light on hard collateral. Lenders that regularly finance professional practices — dental, medical, CPA, law, consulting — are comfortable underwriting goodwill and recurring revenue. Lenders that primarily do asset-based lending (real estate, equipment) often push back on high-goodwill deals or price them punitively. Getting your deal to a goodwill-comfortable lender is what makes the difference.

Common questions

Can I finance a CPA firm acquisition with SBA 7(a)?

Yes — CPA firm acquisitions are one of the most SBA-friendly professional services categories. Recurring revenue (monthly bookkeeping, annual tax) provides underwritable cash flow, and specialty SBA lenders regularly close these deals with 10%-15% equity injections and 10-year amortization.

How is goodwill valued for an SBA loan on a professional practice?

Lenders rely on a third-party business valuation (typically Certified Valuation Analyst or Accredited Business Valuator) that assigns value across tangible assets (FF&E, working capital) and intangible assets (goodwill, client relationships, workforce, brand). Under SBA SOP 50 10 8.1, acquisitions of $3M+ require a Quality of Earnings report in addition to the business valuation.

What are typical DSCR requirements for a CPA or law firm acquisition?

Standard SBA 7(a) DSCR requirement is 1.25x on business acquisitions. Professional services firms with strong recurring revenue and diversified client base often qualify at 1.25x-1.30x; firms with concentration risk (one client = 30%+ of revenue) may need higher coverage or covenant adjustments.

Can I use SBA 7(a) for a law firm partner buy-in?

Yes — SBA 7(a) can finance a partner buy-in transaction, structured as a change-of-ownership. The buying partner personally guarantees the loan, the loan proceeds fund the buy-in payment, and the partnership pays the debt service through allocated partnership distributions. Standard SBA equity injection and DSCR requirements apply.