SBA 7(a) for auto shops: the cheapest capital you can get, if you have the time.
Liftbay Capital packages SBA 7(a) and SBA Express files for repair shops, body shops, tire shops and dealers and places them with our SBA-preferred bank partners. $50,000 to $5,000,000, 10% down, up to 10 years on working capital and 25 years on real estate, with a 680 minimum FICO and 24 months in business. SBA Express closes in 10 to 21 days; a standard 7(a) in 30 to 45.
What are the criteria?
SBA 7(a) / SBA Express — criteria
- Amount
- $50,000 – $5,000,000 (SBA Express capped at $500,000)
- Term
- Up to 10 years on working capital and shop build-outs; up to 25 years on owner-occupied real estate
- Down payment
- 10% on an acquisition or a start-up with experience
- Minimum credit score
- 680
- Minimum time in business
- 24 months (start-ups considered with industry experience and a 20%+ injection)
- Documents
- 3 years business + personal tax returns, YTD P&L and balance sheet, debt schedule, SBA Form 1919/1920, business plan and projections for an acquisition, franchise agreement if applicable
- Collateral
- Available business assets; real estate pledged if the loan is real-estate-secured. Personal guarantee from all 20%+ owners.
- Uses allowed
- Working capital, lifts and shop build-outs, leasehold improvements, business acquisition, partner buyout, refinance of qualifying business debt, owner-occupied real estate
- Uses not allowed
- Paying off a merchant cash advance is generally not an eligible refinance use. Ask us before you plan around it.
- Timeline
- SBA Express 10 – 21 days · Standard 7(a) 30 – 45 days
- Path
- Packaged by Liftbay Capital, placed with SBA-preferred bank partners. Liftbay does not underwrite SBA credit in-house.
SBA 7(a) and SBA Express are packaged by Liftbay Capital and placed with SBA-preferred bank partners. See disclosures.
What do shop owners actually use SBA 7(a) for?
The three jobs where a 10-to-25-year term changes the whole economics of the shop.
Buying the building you rent
A shop that has paid rent on the same bays for a decade is paying someone else’s mortgage. Owner-occupied real estate runs up to 25 years on SBA 7(a), and the payment is often close to the rent.
Typical: $400,000 to $5,000,000 · up to 25 yearsBuying the shop down the street
A retiring owner, a known customer base, bays already built. Acquisition with 10% down, with transition working capital inside the loan.
Typical: $250,000 to $2,000,000 · 10 yearsFranchise service centers
Most national service-center brands are on the SBA Franchise Directory. That listing is what makes the franchise fee financeable alongside the build-out and the opening working capital. Tell us the brand before the file is built.
Typical: $250,000 to $1,500,000A partner buyout
SBA explicitly allows one owner to buy out another. Usually cheaper than a term loan if you can wait 30 to 45 days.
Typical: $100,000 to $2,000,000Is SBA actually right for you?
SBA is right if
You’re buying a shop, a building or a second location, you have 680+ credit and two years of filed returns, you can put 10% down, and you can wait 30 to 45 days.
The payment on a 10-year SBA loan is a fraction of a 12-month advance for the same money.
SBA is wrong if
The lift died Friday, the parts supplier wants the account current by the 1st, or your credit is in the 500s. That is what working capital exists for.
We will tell you this on the phone rather than let you spend three weeks assembling a package that was never going to close.
Franchise service centers and the SBA Franchise Directory
Many national oil-change, tire, brake, transmission and collision brands are listed on the SBA Franchise Directory. That listing is what makes the franchise fee itself financeable inside an SBA 7(a) loan, alongside the build-out, the lifts and the opening working capital.
Tell us the brand before the file is built. Liftbay checks the directory for the brand first, because the answer changes which product we start with and whether the franchise fee goes into the loan or comes out of your pocket.
Who funds an SBA loan at Liftbay. SBA 7(a) and SBA Express files are packaged by Liftbay Capital and placed with SBA-preferred bank partners. Liftbay does not make SBA credit decisions and does not underwrite SBA credit in-house. The partner is identified to you in writing before you sign.
Working capital, lines of credit and factoring are underwritten and funded in-house. See disclosures.
What does an $800,000 SBA acquisition cost per month?
A shop owner buys the four-bay shop across town for $800,000 with 10% down and finances the rest on an SBA 7(a) loan over 10 years.
Illustrative only. Your actual amount, cost and term are set by underwriting your file. Nothing on this page is an offer.
Representative file — $720,000 SBA 7(a) over 10 years
- Purchase price
- $800,000
- Down payment
- $80,000 (10%)
- SBA 7(a) loan
- $720,000
- Term
- 10 years
- Rate
- 10.00% — the SBA 7(a) maximum for loans over $350,000 at the October 2026 Prime of 7.00%
- Monthly payment
- $9,515, before the SBA guaranty fee and closing costs
- Status
- An illustration, not an offer
What a shop needs to qualify.
Every number below is a real criterion. If you clear these, apply. If you don’t, call us and we’ll tell you what would change it.
| Minimum monthly revenue | $15,000 in business bank deposits |
|---|---|
| Minimum time in business | 6 months |
| Minimum credit score | None for working capital or factoring. 600+ for a line of credit. 650+ for a term loan. 680+ for SBA. |
| Funding range | $10,000 to $2,000,000 for working capital. Up to $5,000,000 for term loans, SBA, and factoring facilities. |
| Time to a real offer | About 4 business hours on a complete file. |
| Time to funding | 24 hours. Same day if a clean file is signed before 11:00 AM ET. |
| Documents required | Application plus your 3 most recent months of business bank statements. 4 months if your shop is seasonal. |
| Contract length | 2 pages. |
| Repayment | Fixed daily or weekly ACH from your operating account. No split of your card sales. No holdback percentage. No lockbox. |
| Prepayment discount | Up to 30% off the remaining cost of funding when a working capital advance is paid off within the first 30, 60, or 90 days. |
| Insurance & fleet checks | Counted. Insurer and DRP payments, fleet-account checks, warranty reimbursements and cash all count as deposits. We underwrite the bank statement, not the card terminal. |
| Shop-management software | None required. Whatever you write estimates and invoices on makes no difference to underwriting. |
| Shop types approved | Independent general repair, collision and body, tire and wheel, quick lube, transmission, diesel and truck, European and import specialists, auto glass, detailing and wraps, mobile mechanics, fleet maintenance, performance and restoration shops, franchise service centers, independent used-car dealers and buy-here-pay-here lots. |
| Not required | Collateral for working capital. A business plan. Tax returns under $500,000. A particular parts supplier or DRP agreement. A minimum number of bays or lots. |
| Open to | U.S. businesses with a U.S. business bank account. All 50 states. |
Four minutes. Three bank statements. No credit impact to apply.
SBA questions, answered.
Can I use an SBA loan to buy an auto repair shop?
Yes. Business acquisition is an eligible SBA 7(a) use, with 10% down on an acquisition. The loan can cover the purchase price, working capital for the transition, and the franchise fee where a service-center brand is on the SBA Franchise Directory. Expect 30 to 45 days on a standard 7(a).
Can an SBA loan pay off a merchant cash advance?
Generally no. Paying off a merchant cash advance is usually not an eligible SBA refinance use. If you are carrying advances, the realistic consolidation path is a term loan. Ask us before you plan around it.
How much do I have to put down on an SBA shop loan?
10% on an acquisition or on a start-up where the owner has industry experience. Real-estate-secured loans and expansion files vary; the required injection is stated in the term sheet before you sign.
What credit score do I need for an SBA auto shop loan?
680. SBA is the highest credit bar of the five Liftbay products. A line of credit needs 600+, a term loan 650+, and working capital and factoring have no minimum credit score at all.
How long does an SBA shop loan take?
SBA Express closes in 10 to 21 days. A standard SBA 7(a) takes 30 to 45 days. If you need money this week, that is what working capital exists for.
Does Liftbay fund SBA loans directly?
No. Liftbay Capital packages SBA files and places them with SBA-preferred bank partners, and does not make SBA credit decisions. Working capital, lines of credit and factoring are underwritten and funded in-house.
What is the monthly payment on an SBA loan to buy a second shop?
Buying a second shop for $800,000 with 10% down leaves a $720,000 SBA 7(a) loan. Over 10 years at 10.00% — the SBA maximum for loans over $350,000 at the October 2026 Prime rate — the payment is $9,515 a month, before the SBA guaranty fee and closing costs. Lenders may quote below the maximum; this is an illustration, not an offer.
The cheapest shop capital, if the clock allows it.
$50,000 to $5,000,000, 10% down, 680+ FICO, 24 months in business. Apply once and we’ll tell you honestly whether SBA or something faster is the right file.