Opportunities abound for prospective business owners.

A “silver tsunami” of retiring business owners is creating a wave of buying opportunities for a new generation of owners. According to a 2025 U.S. Bank Small Business Owner Survey, 1 in 3 buyers (32%) plan to acquire a business from a retiring owner.

Small businesses have long been the backbone of the U.S. economy. According to the U.S. Small Business Administration (SBA), America’s 36.2 million small businesses account for more than 40% of the country’s GDP and employ nearly half of all private sector workers.¹

But there is a sea change ahead as aging owners shift their focus to succession planning and retirement. Roughly half of all small businesses—more than 18 million—are over the age of 55, according to the U.S. Census Bureau.²

Six million of these businesses will be part of a “great ownership transfer” by 2035 as baby boomers retire, says McKinsey, which says one million of them could be sold in transactions cumulatively worth $5 trillion.³

For prospective buyers, the primary appeal of buying an existing business versus launching their own start-up is stepping into immediate cash flow and an existing customer base that can lower their financial risk.

Business succession planning takes many forms.

Many prospective buyers are already known to retiring owners.

“Almost three out of every four change-of-ownership transactions are to somebody who the seller knows,” says Erik Daniels, head of SBA lending for U.S. Bank.

But the field remains wide open for prospective buyers starting fresh.

• Nearly half of small business owners plan to transition their business to their children.
• One in four owners plan to sell their business to someone outside the organization or their family.
• 10% plan to transition it to another family member.
• Only 7% of owners plan to dissolve their business when they retire.

Using an SBA loan to buy a business

A common hurdle for any new business opportunity is securing financing, and many buyers are finding solutions in government-guaranteed SBA loans.

Buyers typically finance a business acquisition with an SBA 7(a) loan, an SBA 504 loan or a combination of both, depending on whether the purchase includes real estate or heavy equipment.

U.S. Bank’s research found that 20% of the SBA lending volume in 2025 supported change-of-ownership transactions, when including both 7(a) and 504 loans.

SBA loans are used as a financing tool across a variety of change-in-ownership cases.

“Under SBA change of ownership, you can buy into a business, buy out a partner or come in and acquire a business whole,” says Daniels.

Here’s a summary of the different types of SBA loans.

• SBA 7(a) loans are the main type of SBA loan used for change of ownership. Buyers can generally borrow up to $5 million for a complete or partial business acquisition, family transfer, partner buyout, or stock or asset transaction.
• SBA 504 loans can be used by buyers in situations where a seller also owns the operating location or substantial machinery. In addition, larger ownership transitions can use both: a 7(a) loan for goodwill and operating assets plus a 504 structure for real estate or long-lived equipment.

An SBA loan for business acquisition is less risky

SBA loans are backed by a government guarantee, whereas in conventional loans, a bank assumes the entire risk of a business loan, explains Dane Holmberg, a Twin Cities-based business development officer focused on supporting business owners through the SBA application process at U.S. Bank.

“This SBA guarantee makes it less risky for banks to loan money to owners to help facilitate the transition of the business to new ownership,” he says.

For borrowers, SBA loans provide fully amortized financing with flexible terms, favorable interest rates and no balloon payments.

Working with an experienced SBA Preferred Lender helps to streamline the process and improve the customer experience, adds Holmberg. As an SBA Preferred Lender, U.S. Bank’s SBA loan volume has grown dramatically in recent years in Minnesota, from $18 million in 2022 to $68 million in 2025.

An experienced business banker can assist buyers with the SBA loan application process and other aspects of acquiring and running a business, adds Holmberg.

“Whether you’re purchasing a neighborhood business in the Twin Cities or taking over a company that’s served a Greater Minnesota community for generations, having the right financial partner can make a meaningful difference,” says Holmberg. “As businesses grow and evolve, we can be there every step of the way with guidance, resources and advice tailored to their goals.”

Headquartered in Minneapolis, U.S. Bancorp is the parent company of U.S. Bank National Association, the fifth-largest commercial bank in the United States. With one million clients in Minnesota, including 96,000 businesses, and more than 100 branch locations in the state, the U.S. Bank team invests our hearts and minds to power human potential every day.

Work with a knowledgeable business banker.

Connect with Dane Holmberg, Vice President, SBA Business Development Officer at U.S. Bank
dane.holmberg@usbank.com
763-509-3734

¹ U.S. Small Business Administration, Frequently Asked Questions About Small Business 2026. https://advocacy.sba.gov/2026/02/03/frequently-asked-questions-about-small-business-2026/

² U.S. Census Bureau, Business Owners’ Ages. Sept. 25, 2020. https://www.census.gov/library/visualizations/2020/comm/business-owners-ages.html

³ McKinsey Institute for Economic Mobility, The Great Ownership Transfer: A new era of business stewardship. Feb. 26, 2026. https://www.mckinsey.com/institute-for-economic-mobility/our-insights/the-great-ownership-transfer-a-new-era-of-business-stewardship