# What documents do you need to buy a business with SBA?

**Short answer:** Expect a purchase agreement, a business valuation, a pro forma balance sheet and the seller's statements for 3 years plus interims. Initial Acquisition and Business Expansion deals at $3,000,000 or more also need a Quality of Earnings report. Source: SOP 50 10 8.1, Appendix 20; Appendix 15.

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Last checked: 2026-11-09

You need the standard 7(a) package plus purchase documents. SOP 50 10 8.1, Appendix 20, Para. A.1.k and Appendix 15 set the list.

## Purchase documents

- The buy-sell or purchase and sale agreement, with all schedules and amendments (Appendix 15, Para. A).
- A business valuation that meets Appendix 15, Para. C.1.a.
- A pro forma balance sheet for the business as of the transfer date.
- The seller's financial statements for the last 3 complete fiscal years, plus interim statements.

## Due diligence by purchase size

- **$350,000 or less.** The lender may perform its own valuation, unless buyer and seller have a close relationship.
- **$3,000,000 or more.** Initial Acquisition and Business Expansion deals also need a Quality of Earnings report.

A valuation must be requested by and prepared for the lender. The lender may not use one prepared for you or the seller.

## Other items that can apply

- A real estate appraisal, if property is part of the sale.
- Standby agreements, if seller debt will count as equity.
- A record of a site visit to you and to the business being bought (Appendix 15, Para. A).

## Timing

On a non-delegated loan, the valuation and any Quality of Earnings report go in with the application. On a Preferred Lender Program (PLP) loan, they may be completed after the loan number issues, if formally engaged by then (Appendix 15, Para. D).

## Sources

- [SOP 50 10 8.1, Appendix 20, Para. A.1.k (about p. 417)](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, Paras. A and C.1 (pp. 362, 371)](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, Para. D (p. 386)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)