Finance Your Eyelash Extension Studio Acquisition with an SBA Loan
SBA 7(a) loans are one of the most powerful tools available to buyers acquiring a profitable lash studio — offering low down payments, long repayment terms, and the flexibility to finance goodwill, equipment, and working capital in a single loan.
Find SBA-Eligible Eyelash Extension Studio BusinessesSBA Overview for Eyelash Extension Studio Acquisitions
Eyelash extension studios are well-suited for SBA 7(a) loan financing, making them accessible acquisition targets for qualified buyers who cannot or prefer not to pay all-cash. The SBA 7(a) program allows buyers to acquire an established lash business — including its client base, booking software data, equipment, lease rights, and goodwill — with as little as 10% down. For a studio generating $400K–$1.2M in annual revenue and selling at a 2.5x–4.5x EBITDA multiple, total acquisition prices typically range from $500K to $2.5M, placing most deals squarely within the SBA 7(a) program's $5 million lending ceiling. Because lash studios often carry minimal hard assets relative to their purchase price, the SBA's willingness to finance intangible goodwill is especially critical in this industry. Lenders will closely evaluate the studio's documented recurring revenue — particularly membership programs — rebooking frequency from booking software, technician stability, and the transferability of the client base to assess debt service coverage and creditworthiness.
Down payment: Most SBA lenders require a buyer to inject 10–20% of the total acquisition price from personal, non-borrowed funds when purchasing an eyelash extension studio. For a $1 million deal, this means a buyer should expect to bring $100K–$200K to the closing table. The exact percentage depends on how much of the purchase price is allocated to tangible assets — equipment, furniture, and leasehold improvements — versus intangible goodwill. Lash studio acquisitions often carry 60–80% goodwill as a share of total purchase price, since the primary value lies in the client base, technician team, and brand reputation rather than physical assets. Lenders view higher goodwill concentrations as increased risk and may require a larger equity injection or a seller note of 10–20% to bridge the gap. A seller note — where the seller agrees to receive a portion of the purchase price over time, often tied to client retention milestones — can count as part of the buyer's equity injection if it is on full standby for the duration of the SBA loan, which can effectively reduce the cash needed at closing.
SBA Loan Options
SBA 7(a) Standard Loan
10-year repayment term for business acquisitions; variable rate typically Prime + 2.75% or fixed options available through select lenders; monthly principal and interest payments begin after closing
$5,000,000
Best for: Full acquisition financing for eyelash extension studios priced between $500K and $2.5M, covering purchase price, working capital, and closing costs in a single loan — the most commonly used SBA product for lash studio acquisitions
SBA 7(a) Small Loan
10-year term for acquisitions; streamlined underwriting with faster approval timelines than the standard 7(a); same rate structure as the standard program
$500,000
Best for: Smaller lash studio acquisitions priced under $500K, such as a single-location studio with one or two technicians where the seller is asking a modest multiple on $300K–$400K in annual revenue
SBA 504 Loan
10- or 20-year fixed-rate terms on the CDC portion; requires a minimum 10% down payment; structured as two loans — a first mortgage from a bank and a second from a Certified Development Company
$5,500,000 combined (CDC + bank portions)
Best for: Acquisitions where the lash studio owns its real estate or the buyer intends to purchase the building alongside the business — less common in this industry since most studios operate as tenants in leased retail or medical-adjacent spaces
Eligibility Requirements
- The eyelash extension studio must operate as a for-profit business located in the United States and meet SBA small business size standards — typically fewer than $8 million in annual receipts for personal care service businesses
- The buyer must inject a minimum of 10% equity from non-borrowed personal funds, with most lenders requiring 10–20% depending on the deal's tangible asset coverage and the percentage of goodwill in the purchase price
- The business must demonstrate at least two to three years of tax-filed financial history showing consistent or growing revenue, with clean profit and loss statements, business tax returns, and bank statements that reconcile — cash-heavy or undocumented revenue will disqualify or significantly impair loan approval
- The studio must show sufficient debt service coverage, typically a minimum DSCR of 1.25x, meaning the business's adjusted owner earnings (SDE or EBITDA) must comfortably cover the projected annual SBA loan payments after paying the buyer a reasonable market salary
- The buyer must have a personal credit score of 680 or higher, a demonstrable background in business management or the beauty industry, and no recent bankruptcies, tax liens, or unresolved judgments that would raise lender concerns
- The lease must be assignable to the buyer with landlord consent, and the remaining lease term — including renewal options — must equal or exceed the SBA loan term, which lenders typically require to be at least 10 years for a business acquisition loan
Step-by-Step Process
Identify and Qualify a Target Lash Studio
Source acquisition candidates through business brokers specializing in beauty businesses, online marketplaces such as BizBuySell, or direct outreach to studio owners. Prioritize studios with minimum $300K–$500K annual revenue, an active membership program generating documented MRR, at least two to three employed or contracted technicians beyond the owner, and three or more years remaining on the lease. Request a confidential information memorandum (CIM) and preliminary financials before signing a letter of intent.
Analyze Financials and Calculate SDE
Review three years of tax returns, profit and loss statements, and bank statements. Reconstruct the seller's discretionary earnings (SDE) by adding back owner compensation, depreciation, amortization, one-time expenses, and any personal costs run through the business. For a lash studio, pay close attention to technician payroll as a percentage of revenue, product and consumable costs for lash adhesives and extension supplies, and the revenue contribution from memberships versus single-service bookings. Confirm the DSCR will exceed 1.25x after accounting for your own salary and projected SBA debt service payments.
Submit a Letter of Intent and Negotiate Deal Terms
Issue a non-binding LOI outlining the proposed purchase price, deal structure (asset purchase is strongly preferred for SBA eligibility), down payment, proposed seller note terms, earnout provisions tied to first-year revenue performance, and an exclusivity period of 30–60 days for due diligence. For lash studios, consider structuring 10–20% of the purchase price as a seller note on standby, which satisfies lender equity requirements and aligns the seller's incentives with a successful ownership transition.
Engage an SBA Lender and Submit a Loan Package
Approach SBA Preferred Lender Program (PLP) banks, credit unions with active SBA portfolios, or SBIC-backed lenders experienced in service business acquisitions. Provide your personal financial statements, three years of personal tax returns, a resume demonstrating relevant experience in beauty or business management, the signed LOI, and the target studio's three years of financials. Lenders will order a business valuation — typically required when goodwill exceeds $250K — and will underwrite based on the studio's adjusted cash flow and the buyer's creditworthiness.
Conduct Full Due Diligence on the Studio
Engage a CPA to audit financial records and verify that bank deposits match reported revenue — critical in cash-heavy lash businesses. Review booking software exports (Vagaro, Boulevard, or GlossGenius) to confirm client retention rates, rebooking frequency, and revenue concentration by technician. Examine all technician employment agreements and non-compete clauses. Have an attorney review the lease for assignment rights, remaining term, and landlord approval requirements. Audit inventory of lash extension supplies, adhesives, and consumables. Confirm all state cosmetology licenses and sanitation compliance records are current.
Finalize Loan Approval and Close the Transaction
Provide the lender with completed due diligence findings, the executed asset purchase agreement drafted by your transaction attorney, lease assignment documentation signed by the landlord, and evidence of business insurance. The SBA lender will issue a commitment letter, and the closing process — coordinated between your attorney, the seller's attorney, and the lender — will fund the loan, transfer assets, and record the transaction. Plan for a seller transition period of 30–90 days during which the seller introduces you to key clients, trains you on studio operations, and supports technician retention.
Common Mistakes
- ✗Failing to verify that the studio's reported revenue is supported by booking software data and bank deposits — undocumented or cash revenue that cannot be proven will be excluded from the lender's income calculation and may derail loan approval entirely
- ✗Underestimating technician dependency risk by not auditing which percentage of revenue is generated by the owner versus staff — if the owner performs 60% or more of services, lenders and buyers should expect significant revenue disruption post-close
- ✗Neglecting to confirm lease assignability before submitting the SBA loan application — a landlord who refuses to assign the lease or demands onerous new terms can collapse a deal even after loan approval is secured
- ✗Overlooking working capital needs at closing — lash studios require ongoing inventory of adhesives, lash trays, and consumable supplies, and buyers should request that the SBA loan include a working capital component rather than depleting personal reserves immediately after close
- ✗Accepting seller financials at face value without a professional quality of earnings review — personal expenses such as personal vehicle costs, family member payroll, or non-business-related travel are frequently embedded in lash studio books and must be properly identified, documented, and added back to accurately calculate SDE
Lender Tips
- Target SBA Preferred Lender Program (PLP) banks and lenders with demonstrated experience in personal care or service business acquisitions — they understand goodwill-heavy deals and will underwrite lash studio acquisitions more efficiently than generalist lenders unfamiliar with the beauty industry
- Prepare a detailed business plan that explicitly addresses technician retention strategy, your plan to maintain and grow the membership program, and how you will manage the client transition — lenders want to see that you have a concrete plan to protect the cash flow that services the debt
- Present booking software data exports — rebooking rates, active membership counts, monthly recurring revenue, and revenue per technician — as supplementary financial evidence alongside tax returns; this data validates the sustainability of reported revenue in a way that traditional financials alone cannot
- Be prepared to document your industry or management experience in your loan application — buyers with prior salon ownership, cosmetology licensing, or beauty business management backgrounds will receive more favorable underwriting treatment than buyers with no personal care industry context
- Ask your lender upfront whether a seller note on standby can count toward your equity injection — many SBA lenders will allow a fully subordinated seller note of 10–20% to reduce the cash you need at closing, which is particularly useful in lash studio deals where sellers are motivated to structure creative financing to achieve their asking price
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Frequently Asked Questions
Can I use an SBA loan to buy an eyelash extension studio if I have no beauty industry experience?
Yes, but your path to approval will require stronger compensating factors. SBA lenders want confidence that the buyer can operate the business successfully enough to service the loan. If you lack direct beauty industry experience, you should demonstrate strong business management credentials, hire or retain an experienced studio manager before or immediately after closing, and structure a meaningful seller transition period of 60–90 days. Some lenders may also require a larger equity injection — closer to 20% — to offset perceived operational risk.
How much does a typical eyelash extension studio acquisition cost and how much will I need to put down?
Eyelash extension studios in the lower middle market typically sell for $500K to $2.5M depending on revenue, profitability, location, and whether a membership program is in place. At a 2.5x–4.5x EBITDA multiple, a studio generating $400K in annual revenue with $150K in adjusted SDE might sell for $375K–$675K. With an SBA 7(a) loan, you would need 10–20% as a down payment — roughly $37K–$135K in that example — with the remainder financed over 10 years. A seller note on standby can count toward part of your equity requirement, potentially reducing your cash outlay at closing.
What financial records do I need from the seller to get SBA loan approval for a lash studio?
Lenders will require three years of business tax returns (Form 1120S or Schedule C depending on entity type), three years of profit and loss statements, 12 months of business bank statements, a current balance sheet, and a detailed list of assets included in the sale. For a lash studio specifically, lenders and their appraisers will also want to review booking software reports showing client retention, rebooking rates, and revenue by technician to validate that reported income is real and recurring. Any unexplained discrepancies between bank deposits and reported revenue will be a significant underwriting obstacle.
Will the SBA loan cover goodwill if the lash studio has limited physical assets?
Yes — this is one of the key advantages of the SBA 7(a) program for lash studio acquisitions. Unlike conventional bank loans, which typically require hard collateral to secure the full loan amount, the SBA allows lenders to finance the goodwill component of a business acquisition, which in a lash studio can represent 60–80% of the total purchase price. The lender will require a formal business valuation to support the goodwill allocation, and the SBA will take a lien on all business assets, but the absence of major equipment or real estate will not automatically disqualify the loan.
What happens if the key lash technicians leave after I buy the studio?
Technician turnover is the most significant post-acquisition risk in a lash studio acquisition, and it is a concern SBA lenders take seriously. To protect against this, buyers should negotiate employment agreements with non-solicitation clauses for all key technicians as a condition of closing, include a seller note tied to staff retention milestones, and budget for competitive compensation packages to retain top performers. From a loan perspective, if revenue drops significantly due to technician departures, the business's ability to service SBA debt may be impaired — which is why lenders underwrite conservatively and why buyers should negotiate earnout provisions that reduce purchase price if revenue targets are not met in year one.
How long does the SBA loan process take for a lash studio acquisition?
The full process from signed LOI to loan closing typically takes 60–90 days for a well-prepared transaction. Pre-approval can be obtained in two to four weeks if you submit a complete loan package to a PLP lender. Due diligence, business valuation, lease assignment, and legal documentation account for most of the remaining time. Delays most commonly occur when a seller's financial records are disorganized, when the landlord is slow to respond to lease assignment requests, or when the buyer's personal financial documentation is incomplete. Working with an SBA-experienced attorney and accountant from the start will significantly reduce timeline risk.
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