Insights
2026-02-10
Would This SBA Deal Get Approved? Real Scenarios Explained
Why scenario-based SBA underwriting matters
The fastest way to understand SBA approvals is through real-world scenarios. Below are anonymized examples reflecting common outcomes we see at Port 51 Lending.
Scenario 1: Approved acquisition
- $4M purchase price
- $400K equity injection
- Seller note with standby
- Experienced buyer
Outcome: Approved due to strong cash flow, structure, and experience.
Scenario 2: Declined expansion
- Thin margins
- Aggressive projections
- No contingency planning
Outcome: Declined due to insufficient downside protection.
Scenario 3: Delayed real estate purchase
- Strong operating history
- Documentation gaps
Outcome: Approved after conditions were satisfied.
What these scenarios reveal
- Structure matters more than size
- Experience reduces risk
- Preparation accelerates approvals
FAQs
Can small SBA deals be declined?
Yes. Deal size does not determine approval.
Do seller notes improve SBA approval odds?
Yes, when structured properly.
Are delays always negative?
No, but they increase deal risk.
Can declined SBA deals be restructured?
Often, yes.
Why do similar deals get different outcomes?
Execution, structure, and experience drive results.
Share this story on Linkedin, Facebook, X
