The Silver Tsunami: A Wave of Business Opportunities for New Owners
More than 18 million small businesses in the U.S. are over the age of 55, sparking a surge of acquisition opportunities as baby boomers retire, according to the U.S. Census Bureau. By 2035, six million of these businesses are expected to transition hands, with up to $5 trillion in transactions, according to McKinsey. For prospective buyers, this “silver tsunami” offers a strategic path to enter the market with established cash flow and customer bases, reducing the risks associated with starting from scratch.
The Demographics Driving the Shift
Small businesses account for 40% of U.S. GDP and nearly half of private-sector employment, according to the U.S. Small Business Administration (SBA). The aging owner demographic is reshaping the industry. A 2025 U.S. Bank survey found that 32% of buyers plan to acquire businesses from retiring owners, highlighting the growing interest in established ventures. Nearly half of small business owners intend to pass their companies to family members, while one in four plan to sell to external buyers, per the same report.
A Market in Transition
Prospective buyers often favor acquiring an existing business over launching a startup due to immediate cash flow and an established customer base. Erik Daniels, head of SBA lending at U.S. Bank, notes that three out of every four change-of-ownership transactions involve someone the seller already knows. Yet, the market remains open for new entrants, with 20% of SBA lending in 2025 supporting business acquisitions, according to U.S. Bank research.
The Financial Bridge: SBA Loans
Securing financing is a critical hurdle for buyers, but government-backed SBA loans provide a solution. The SBA 7(a) loan, the most common type for acquisitions, allows borrowers to finance up to $5 million for purchases, partnerships, or asset transactions. For larger deals involving real estate or equipment, the SBA 504 loan complements the 7(a) by covering long-term assets. Dane Holmberg, a business development officer at U.S. Bank, explains that SBA loans lower risk for lenders, enabling favorable terms for borrowers.
Lenders as Navigators
Experienced SBA Preferred Lenders streamline the acquisition process. U.S. Bank, for instance, saw its SBA loan volume in Minnesota grow from $18 million in 2022 to $68 million in 2025. Holmberg emphasizes that these lenders offer tailored guidance, helping buyers manage the complexities of transitioning ownership. “Whether it’s a neighborhood business or a long-standing regional company, the right financial partner can make a meaningful difference,” he says.
The Coming Wave of New Owners
The coming decade will see a significant shift in U.S. business ownership, driven by retiring entrepreneurs and evolving financing tools. With SBA loans reducing barriers to entry, the market is poised for a new wave of operators to step in.
Worth a look