# Can an International Trade loan finance buying a business?

**Short answer:** Sometimes. Export-based International Trade loans can support Business Expansion and employee stock ownership plan (ESOP) or Cooperative deals. Import-competition loans can also support Owner Buyouts. Neither can fund an Initial Acquisition (SOP 50 10 8.1, Sec. B, Ch. 5, Para. C.2).

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Last checked: 2026-11-08

Sometimes. It depends on which eligibility path the loan uses and on the type of deal (SOP 50 10 8.1, Sec. B, Ch. 5, Para. C.2).

## What each path allows

- Export development or expansion: Business Expansion and ESOP and Cooperative transactions.
- Adversely affected by import competition: Business Expansion, Owner Buyout, and ESOP and Cooperative transactions.
- Neither path: Initial Acquisition.

An Initial Acquisition puts in a new majority or largest owner who was not previously an owner. It also covers a new owner employed by the business for fewer than 24 months (Appendix 15, Para. A). It is the default category.

## Appendix 15 still applies

- Equity: 10%, which the lender may reduce or eliminate for a Business Expansion or Owner Buyout if the borrower has enough liquidity and no negative net worth. See Appendix 15, Para. C.2.a.
- Coverage: 1.15:1 on a Business Expansion and 1.25:1 on an Owner Buyout or ESOP deal (Para. C.2.b).
- Term: 10 years of amortization, with only the real estate portion allowed up to 25 years on a blended basis (Para. B.1).
- A Quality of Earnings report is required on a Business Expansion priced at $3,000,000 or more (Para. C.1).

The lender must also document how the loan improves your competitive position (Sec. B, Ch. 5, Para. C.1.c). A first-time buyer should look at other 7(a) options instead.

## Sources

- [SOP 50 10 8.1, Sec. B, Ch. 5, Para. C.2 (Para. C begins p. 193)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)
- [SOP 50 10 8.1, Appendix 15 (p. 362), Paras. A, B.1 (p. 370), C.1 and C.2 (Para. C begins p. 371)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)
- [SBA Policy Notice 5000-877629, International Trade Loan updates (effective May 1, 2026)](https://legacy.sba.gov/document/policy-notice-5000-877629-7a-international-trade-loan-program-updates)