When Zero Down Might Be Okay

What if the one thing stopping you from owning a thriving online business isn’t money… but what you don’t know about SBA financing? 

In this episode, Jaryd Krause chats with Ray Drew—aka SBA Ray—host of The Art of SBA Lending, the #1 podcast that pulls back the curtain on how SBA loans really work.

Ray is the Managing Director at Truliant Federal Credit Union, a deal closer with hundreds of successful SBA-financed businesses under his belt, the man behind millions in SBA-backed deals, and the architect of SBA success stories nationwide.

He’s seen everything—the smooth wins, the total nightmares, and the deals that fell apart days before closing.

Most people think an SBA loan is simple: apply, get approved, buy the business, boom—you’re a CEO. 

But the truth? 

There are traps hidden in plain sight. And missing just one could cost you the deal—or tens of thousands in wasted time and fees.

Here’s what Ray and Jaryd dive into:

🔥 The hidden misconceptions that trip up first-time buyers (even the smart ones)
🔥 Why your “perfect” deal structure could actually kill your loan approval
🔥 The truth about interest rates, balloon payments, and seller financing nobody tells you
🔥 What really happens behind the scenes when lenders assess your deal
🔥 The surprising reason your loan might get rejected even if you’re qualified
🔥 How long does the process really take—and what delays can quietly blow up your timeline
🔥 Why the right M&A attorney can save your deal when everything’s on the line

Ray doesn’t sugarcoat it—he breaks down exactly what’s going wrong in the SBA space and what you need to know before you sign anything.

If you’ve ever dreamed of acquiring an online business but didn’t know how to fund it, this is your reality check and your roadmap.

Because when it comes to SBA lending, it’s not just about money… It’s about knowing the game before you play it.

🎧 Grab your headphones. This one could save your next deal.

Episode Highlights

01:12 – What SBA lending is and why it’s a game-changer for business buyers

06:40 – Why buying a business often beats starting from scratch

09:24 – The most common misconceptions about SBA loans

12:10 – Key factors lenders look for before approving a deal

15:32 – The #1 mistake buyers make during the SBA loan process

18:46 – How to choose the right lender and build a strong relationship

21:55 – Real stories from hundreds of SBA-financed deals—the smooth, the messy, and the ones that fell apart

25:08 – How does the deal structure and negotiation impact loan approval

28:26 – Why preparation is the real secret to fast, successful closings

31:47 – Ray’s process for evaluating if a business is truly financeable

34:15 – Lessons from deals that went wrong—and how to avoid the same pitfalls

37:28 – What every buyer should do 6–12 months before applying for an SBA loan

39:52 – Ray’s best advice for entrepreneurs who want to acquire a business in 2025

Key Takeaways

➥ SBA financing is one of the most powerful yet misunderstood tools for buying a business—it lets entrepreneurs acquire profitable companies with as little as 10% down.

➥ Preparation is everything. Clean financials, accurate tax returns, and a solid business plan can drastically increase your chances of getting approved.

➥ The right lender matters more than most realize. Experienced SBA lenders can structure deals creatively, solve problems quickly, and close with confidence.

➥ Not all deals are created equal—lenders look for stable cash flow, strong management transitions, and businesses with proven profitability.

➥ Expect surprises. Even well-structured deals can fall apart near closing, so patience, flexibility, and expert guidance are essential.

➥ Buying a business with SBA financing isn’t just about getting a loan—it’s about acquiring a long-term wealth vehicle that can transform your financial future.

➥ Execution beats theory. Ray’s track record proves that the best buyers are those who take action, learn from each deal, and build relationships with trusted lenders.

About Ray Drew

Ray Drew is the SBA Managing Director at Truliant Federal Credit Union, where he helps entrepreneurs buy businesses through SBA financing. With over a decade in the industry, Ray has closed hundreds of deals and is widely regarded as one of the leading voices in SBA lending today. He is also the host of the #1 podcast in the SBA lending industry, The Art of SBA Lending.

Connect with Ray Drew

➥ www.sbaray.com

➥ https://www.youtube.com/@SBA_Ray

 Resource Links

➥ Connect with Jaryd here - https://www.linkedin.com/in/jarydkrause

➥ Buying Online Businesses Website - https://buyingonlinebusinesses.com

➥ Download the Due Diligence Framework - https://buyingonlinebusinesses.com/freeresources/

➥ Sell your business to us here - https://buyingonlinebusinesses.com/sell-your-business/

➥ Google Ads Service - https://buyingonlinebusinesses.com/ads-services/

Buy & Sell Online Businesses Here (Top Website Brokers We Use) 🔥

➥ Empire Flippers - https://bit.ly/3RtyMkE

➥ Flippa - https://bit.ly/3wGa8r5

➥ Motion Invest - https://bit.ly/3YmJAmO

➥ Investors Club - https://bit.ly/3ZpgioR

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