In this episode of the Acquisitions Academy Podcast, host Mike Abramowitz sits down with SBA lending expert Nathan Sable to break down how SBA acquisition financing really works from the lender’s perspective. Nathan shares insights from over 20 years in business banking and explains why SBA loans are such a powerful tool for first-time business buyers. The conversation dives into what lenders evaluate first, including buyer qualifications, liquidity, cash flow, adjusted EBITDA, and seller transition risks. Nathan also discusses common deal-killers, including poor liquidity planning, weak household income, and character-related issues that can affect approvals. This episode is packed with practical guidance for entrepreneurs looking to buy their first business using SBA financing.

Quotes:

• “We’re looking at the business cash flow and the business’s ability to service the debt that’s taken on.”

• “Is someone buying a job, or are they investing in a business?”

• “It’s more than just getting a loan — they need to understand all the moving pieces.”

Takeaways:

1. SBA loans allow lenders to finance deals that conventional banks often cannot approve.
2. Buyers must demonstrate strong personal financial health before lenders evaluate the business.
3. Post-close liquidity is critical — lenders want buyers to keep cash reserves after the down payment.
4. Household income and outside income sources can significantly impact loan approval.
5. Adjusted EBITDA is one of the key metrics lenders analyze when sizing a loan.

Episode Timeline:

02:10 – Nathan Sable’s background in banking and family business

04:32 – Why SBA loans are powerful for acquisition entrepreneurs

07:05 – How lenders evaluate first-time business buyers

09:48 – Understanding personal financial statements and liquidity

12:20 – “Buying a job” versus acquiring a scalable business

14:55 – Breaking down cash flow and debt service coverage

17:30 – How adjusted EBITDA affects SBA loan approvals

20:05 – Seller transition plans and operational continuity

22:48 – Why household income and spouse income matter

25:30 – Common financial red flags lenders watch for

28:10 – Credit history, bankruptcies, and character evaluation

31:02 – Real acquisition examples and underwriting lessons

34:20 – Advice for entrepreneurs preparing to buy a business

37:15 – Common mistakes buyers make during the SBA process

Conclusion

This episode offers a rare behind-the-scenes look at how SBA lenders evaluate acquisition opportunities and first-time buyers. Nathan Sable provides actionable insights that can help entrepreneurs prepare stronger deals, avoid common mistakes, and better understand what lenders truly care about during underwriting. Whether you are actively searching for a business to buy or just beginning your acquisition journey, this conversation delivers a practical roadmap for navigating SBA financing successfully.

Links & Resources

Nathan Sable – SBA Specialist, Huntington Bank

• Mobile: (330) 842-0883

• Office: (330) 677-7731

• Email: nathan.sable@huntington.com

• Coverage Area: All lower 48 states

• In-Person Meetings Available: Northeast Ohio

• Huntington Bank has ranked #1 nationally in SBA 7(a) loan lending for 7+ consecutive years (2017–2024).

SBA Specialist Profile:

https://www.huntington.com/SmallBusiness/loans/find-an-sba-specialist/sable-nathan