Welcome to the JackQuisitions newsletter, |
If you want to buy a home service business with an SBA loan in 2026, your edge isn't complicated: prep early, get your licensing plan straight, and stay patient on ops. |
Below, I'll break down how to do it the right way so you don't burn six months chasing deals you can't actually close. |
In the meantime, if you need personal guidance, reach out to Alan Peterson of First Internet Bank. He's seen it all, so he can answer every question and address all your concerns. |
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Ready For Your Next Acquisition? |
Check out these acquisition opportunities that caught my eye this week: |
Western Window Service is a trusted window, door, and screen repair-first specialist (since 1958) with a strong brand and a rare moat in hard-to-find parts inventory. It's a stable niche service business doing $613K in revenue, offered at a $325K asking price with significant inventory and equipment included. A family-owned residential plumbing company established in 1999 with a strong reputation for fast response and quality workmanship. It's a turnkey retirement sale doing ~$490K in revenue and ~$75K cash flow, listed at $299K. A long-established HVAC company (since 1996) with a contracted customer base, strong brand recognition, and franchisor support across install, service, and indoor air quality. The listing highlights $5.58M in 2024 revenue and seller financing.
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The New SBA Advantage: Be Ready Before You Shop |
SBA buyers in 2026 are learning this the hard way: |
The deal doesn't die at closing. It dies in underwriting. |
Not because the business wasn't attractive. |
Not because you didn't have the down payment. |
But because you couldn't answer the questions that matter most to lenders and sellers right now: Who holds the license? What happens when the seller leaves? And can this thing actually run without heroics? |
That's why the advantage today is simple: preparation, licensing strategy, and operational patience. |
The Quiet Shift That's Changing Everything |
Here's what lenders are seeing right now: |
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The main culprit? The buyer couldn't solve the licensing problem. |
And lenders are done hoping you'll figure it out later. |
If you come in saying "I'll find someone to qualify it," you're already behind. |
Licensing Is No Longer A Detail. It's The Gate. |
The biggest practical change: licensing is now a first conversation. |
Not a closing checklist item. |
If the seller is the only licensed qualifier, the entire transaction becomes fragile. |
And the old strategy of "seller keeps 1 to 5% equity so we qualify the business" is a lot harder now because even tiny retained ownership can force the seller to personally guarantee the loan for a period of time. |
Most sellers will not do it. |
Not even for family. |
So what happens? |
Buyers either: |
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The Strategy That's Quietly Winning Deals |
The cleanest workaround is simple. |
Bring a licensed person into the buy side early. |
Not as a random "qualifier." |
As a real partner. |
That can look like: |
A key existing employee joining the buy side with a small stake A licensed operator you recruit before you even start searching A trusted industry partner who wants a bigger seat at the table
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This does two things at once. |
It makes the deal financeable. It makes the transition survivable. |
A Better Buyer Is Emerging |
The best signal from the whole conversation was this: |
The market is filtering out tourists. |
The licensing friction is scaring off the "overnight Warren Buffett" crowd. That's good for you if you're serious. |
What lenders want now is not hype. |
They want buyers asking adult questions like: |
How do I retain the key techs? What happens if the top customers leave? What does transition look like week one? Where does the license live after close?
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Those questions are the difference between a deal that survives and one that collapses. |
The Patience Rule Most Buyers Ignore |
Here's where most first-time buyers blow it. |
They think the win is deal #2. |
So they rush. |
They get excited. They start sending listings. They want to scale immediately. |
But lenders want to see stabilization before expansion. |
That means: |
Don't expand because you can Expand because the first business is stable Expand because your team, systems, and cash flow can absorb it
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Two years of disciplined operations will beat six months of frantic deal chasing every time. |
What You Should Do Before You Send Another Offer |
If you want to buy home service businesses with SBA loans in 2026, your job is to get "bank-ready" before you get deal-ready. |
Start here: |
Get pre-qualified, so you know what you can actually borrow Solve licensing early, so you stop looking at deals you cannot close Define your transition plan, so your first 90 days are not chaos Be realistic about trade fit, because there's nothing wrong with staying W2 if you are forcing it
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There are a lot of great businesses for sale. |
But only a small group of buyers can actually close them. |
Get more of my thoughts on this in the video below… |
 | The New SBA Rule That's Destroying Home Service Deals |
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Tell Me What You're Thinking |
Bottom line: SBA wins in 2026 go to the buyer who solves licensing early, builds a real operating plan, and plays the long game. |
Are you heading down this financing path in the months to come? |
How do you feel about today's JackQuisitions newsletter? |
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Disclosure: Some of the content and links in this newsletter are sponsored or affiliate links, which means we may receive payment or earn a commission if you click through or purchase. However, all opinions expressed are entirely my own. |
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