$3 Million Auto Repair Shop SBA Acquisition in Long Beach

By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions

A $3 million auto repair shop SBA acquisition in Long Beach is the canonical small-balance owner-operator transaction. Most $3M Long Beach auto repair acquisitions combine SBA 504 for real estate (at 80 percent LTC, special-purpose 20 percent down) with SBA 7(a) for equipment, working capital, and goodwill. The deal closes in 75 to 90 days at a blended cost of capital materially below conventional bank alternatives.

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What a $3M Auto Repair SBA Capital Stack Looks Like

$3M Long Beach auto repair acquisitions typically allocate ~$2M to real estate and ~$1M to equipment, working capital, and goodwill. SBA 504 finances real estate; SBA 7(a) finances the operating business pieces.

Capital Source Rate / Cost Size / LTV Notes
SBA 504 real estate Bank 1st 7.00% / CDC 5.85% fixed $2M / 80% LTC (20% down) Real estate financing only
SBA 7(a) operating Prime + 2.50% $1M / 90% LTC Equipment, working capital, goodwill
Total SBA Blended ~6.95% $2.7M / 90% LTC $300K borrower equity
Conventional bank alternative 7.85% $2.1M / 70% LTV $900K down, recourse

Pricing reflects active CLS CRE quote pipeline as of April 2026. Specific deal pricing depends on sponsor, property, and structure.

Who Closes a $3M Auto Repair SBA Deal

Typical $3M Long Beach auto repair sponsors are first-time SBA buyers transitioning from senior mechanic or general manager roles to ownership, or experienced operators expanding to a second location. Long Beach favors auto repair given dense population, automotive culture, and Port of Long Beach commercial vehicle traffic.

A Real $3M Example

On a $3.4M acquisition of an independent auto repair shop in Long Beach with 12 service bays, 28 years of operating history, and strong DRP relationships with major insurance carriers, the buyer was a senior mechanic at the shop transitioning to ownership. SBA 504 at 80 percent LTC financed real estate at $2.2M. SBA 7(a) at $1M financed equipment, working capital, and goodwill. The seller stayed on as part-time advisor for 12 months supporting customer transition.

Anonymized. All deal references protect borrower and lender identity.

$3M Auto Repair Shop SBA Long Beach FAQ

Yes. California is one of the most active SBA markets for auto repair given high vehicle ownership and demand for automotive services.
Auto repair (without fuel sales) faces less environmental exposure than gas stations. Phase I ESA still mandatory; Phase II sometimes required if fuel was historically dispensed.
SBA 504 + 7(a): 75 to 105 days combined.

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