The SBA Removed Geographic Limits on Expansion — Our ETA Financing Expert Explains Why It Matters

This Week in ETA:

• Searchers: We kicked off our off-market bootcamp last week, and our searchers have begin building their prospecting lists in order to reach out to potential sellers. We had Miles Veth, who has done over 700 outbound campaigns himself, share how to use Clay more effectively to identify leads. I also asked Miles to put together a short video on how to do this yourself. You can check it out here.

• Investors: The latest BizBuySell Insight Report shows small-business deal activity has grown 8% YoY. Activity is strong, but valuations are tightening: the median sale price slipped 2% YoY to around $320K, while cash flow and revenue also declined. Buyers are jumping back in, sensing opportunity, while sellers are starting to feel the pressure of softer valuations and tighter margins. Service and retail businesses are leading the action, and manufacturing is slowing as costs and uncertainty rise. What’s interesting to me is the sentiment shift: most buyers still feel confident they can strike a fair deal, yet sellers are getting more cautious. That dynamic is creating some attractive opportunities for investors who are patient and disciplined about pricing.

Partner Perspective:

This week, I’m excited to introduce Matthias Smith, Founder and President of Pioneer Capital Advisory, our go-to partner for acquisition financing. Pioneer Capital Advisory is a commercial loan brokerage helping business buyers secure SBA 7(a) and non-SBA financing nationwide. So far in 2025, the firm has closed 44 SBA 7(a) transactions totaling $104 million, and over $240 million since inception—empowering buyers across the country to achieve their acquisition goals.

Pioneer runs a competitive buy-side financing process by matching each deal to the lenders best suited to its structure, size, and industry. Every client receives a comprehensive lender package outlining the business, borrower background, sources and uses of funds, and debt coverage analysis—helping lenders underwrite efficiently.

Once in underwriting, the firm’s Head of Closing Operations guides buyers through a tailored pre-closing checklist to keep deals moving and avoid last-minute hurdles. Matthias and his COO, Valerie Stash, bring over 20 years of combined SBA lending experience, leading a team that brings clarity and confidence to what can otherwise be a complex process. Pioneer Capital Advisory is paid by the SBA lender—not the buyer—and is completely free to work with.

Matthias is also a recognized voice in the ETA community, known for his insights on SBA lending and trends shaping the business-buying landscape. Having worked with him and his team personally, I can give my wholehearted endorsement of Pioneer Capital Advisory's skill, effectiveness, and professionalism.

Matthias Smith: If you’re looking to expand a business using SBA financing, the latest procedural notice is a game-changer. The SBA has removed the requirement that an acquiring company and the target operate in the same geographic area to qualify as an “expansion.” In other words, if you already own a business in a given industry, you can now acquire another in the same industry—regardless of location—and still access the more favorable expansion loan terms. This single change opens the door for a far wider range of strategic acquisitions. I write about it more here, but in summary, 

Entrepreneurs can now:

• Expand into new geographies while maintaining expansion status and favorable terms.

• Acquire sister companies or roll-up targets in the same industry without being penalized for crossing state lines.

• Retain the ability to leverage proven management experience and operational history, even in a new market.

What this means for you: Deals are now more financeable via SBA 7(a) or 504 because lenders view them as expansions, not startups. You can pursue targets regionally or nationally, giving you more options and competitive leverage.

Featured Off-Market Deals:

Brought to you by Deal Prospectors

Plus:

• I’ll be speaking at a Chicago Deep Dish ETA & SMB Event on November 18. We’ll talk capital stacks and operating an SMB. Would love to meet you there! You can register here.

• If you manage to get a business seller on the phone, be prepared to talk about their business! Good reminder to treat every call with the preparation it deserves.

Question:

Hit reply and tell us - What questions do you have for Matthias on securing financing for your acquisition?