Workarounds for hitting the SBA cap

How far can $100,000 really take you in business acquisitions?

One deal?
A small portfolio?
Or a scalable acquisition machine?

In this episode, Jaryd Krause sits down with SBA Business Development Officer Glenn Giro to break down the real math behind buying businesses with SBA financing, and why there’s technically no cap on how many businesses you can acquire, as long as you understand the rules that actually stop most buyers.

They unpack how entrepreneurs are using up to 90% SBA financing, long 10-year terms, and no prepayment penalties to build portfolios most people assume are out of reach.

You’ll discover:

• How $100,000 in cash can unlock a $1M+ acquisition
• The $5M SBA cap per NAICS code and how it impacts serial buyers
• Why banks love SBA loans (and why that matters to you)
• The real fees lenders don’t explain upfront
• How cash flow and debt service coverage are actually calculated
• What changes when you go from your first deal to your second, third, or fifth
• When 100% financing is possible and when it’s not
• Why do some high-multiple digital businesses get rejected
• The timeline lenders expect before approving your next acquisition
  
  

If you’re serious about buying your first digital business or turning one deal into a portfolio of cash-flowing assets, this episode will completely reframe how you think about capital, leverage, and scale.

Watch the full video to see the numbers, strategies, and acquisition pathways most buyers never learn about.

Episode Highlights

02:55 – Why a “simple” 10% down payment can still kill your SBA deal if you don’t understand total project costs.

05:08 – The harsh truth: why $100K is often not enough to safely buy a $1M business.

10:52 – How SBA’s 75% loan guarantee unlocks 90% financing—and why banks are eager to lend.

12:57 – The hidden cost most buyers miss: $20K–$30K in SBA fees on a $1M acquisition.

15:16 – The real reason most buyers can’t buy a second business right after their first.

23:59 – The quiet rule that caps portfolios at $5M per NAICS code—and how it blocks long-term scaling.

Key Takeaways

➥ SBA financing allows buyers to acquire businesses with as little as 10% down, but cash reserves and liquidity matter more than purchase price alone.

➥ The SBA’s 75% government guarantee reduces bank risk and unlocks long-term, high-leverage financing for profitable online businesses.

➥ Seller financing can help bridge equity gaps, but new rules requiring 10-year standby make it rare in competitive acquisitions.

➥ Most buyers need 6–12 months of successful operations before qualifying for a second SBA-backed acquisition—proof of execution accelerates approvals.

➥ Each business must support its own debt service; strong cash flow in one acquisition won’t compensate for a weak second deal.

➥ NAICS code limits quietly shape acquisition strategy—buyers who plan ahead can scale portfolios faster and avoid unexpected financing caps.

About Glenn Giro

Glenn Giro is a seasoned SBA business development officer and acquisition financing expert who helps entrepreneurs buy and grow businesses using strategic SBA-backed loans. He hosts “SBA University,” a training series for business owners and aspiring acquirers, and regularly speaks about acquisition financing and business ownership strategies.

Connect with Glenn Giro

➥ https://www.linkedin.com/in/glenn-giro/

➥ https://www.youtube.com/@SBAUniversity  

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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