Finance Your Appliance Repair Business Acquisition with an SBA Loan

Before approaching lenders, establish your target parameters for an appliance repair acquisition: minimum $300K SDE, at least two full-time technicians beyond the owner, documented service records in a dispatch platform like Jobber or ServiceTitan, and a service territory with clear demand density. Identify whether you're targeting a single-location independent shop or a multi-route operation. Having clear criteria speeds up lender conversations and demonstrates buyer seriousness.

Approach SBA Preferred Lenders — banks or non-bank lenders with delegated SBA authority — who have closed home services or trades acquisitions before. Provide your personal financial statement, three years of personal tax returns, a resume highlighting relevant experience, and a brief summary of the target business if identified. Pre-qualification gives you a realistic loan ceiling and signals credibility to sellers and brokers in the appliance repair space.

Work with a business broker specializing in home services or search platforms listing appliance repair businesses for sale. Review the target's tax returns, P&L statements, service dispatch records, technician roster with certifications, and manufacturer authorization agreements. Once satisfied with preliminary due diligence, submit a Letter of Intent outlining purchase price, deal structure including seller note percentage, and due diligence period — typically 30–60 days.

Your lender will require three years of business tax returns, three years of P&L statements with addbacks itemized, a current balance sheet, a list of all assets including vehicles, diagnostic equipment, and parts inventory, copies of manufacturer service authorization agreements, and the executed LOI. The lender's credit team will analyze debt service coverage ratio — typically requiring 1.25x minimum — based on the business's adjusted SDE after your projected loan payments.

Conduct structured due diligence focused on the four highest-risk areas in appliance repair acquisitions: technician certifications and retention likelihood post-sale, customer concentration and repeat call rate from service history records, parts supplier relationships and inventory valuation, and the owner's actual daily involvement in technical work versus management. Engage a CPA to recast financials and confirm true SDE. Consider an employment attorney to review any technician non-compete or offer letter structures.

Once the lender issues a conditional commitment, work through any remaining conditions — typically an appraisal of tangible assets, verification of manufacturer authorizations, confirmation of technician employment agreements, and review of the lease assignment for the service facility if applicable. Coordinate with your attorney on the asset purchase agreement structure, bill of sale, and any transition services agreement with the seller covering a 60–90 day training and introduction period with key customers and technicians.

At closing, SBA loan proceeds fund the purchase price, with the seller note documented as a subordinated promissory note. Immediately prioritize technician retention conversations, transfer of manufacturer service authorization accounts, and migration of the customer database into your dispatch platform. Activate your working capital reserve — typically 3–6 months of operating expenses — to cover parts inventory restocking and any seasonal revenue dips during the transition period.