The Entrepreneur DNA – "Buy Then Build: The SBA 7(a) Strategy Anyone Can Use"

Host: Justin Colby (Bleav)
Guest: Ben Kelly
Date: November 13, 2025

Overview

In this engaging episode, Justin Colby sits down with Ben Kelly, a former Army intelligence officer turned serial business acquirer, to demystify the process of buying businesses using the SBA 7(a) loan program. They explore practical business acquisition strategies that anyone—including those without a high net worth—can use, emphasizing how everyday entrepreneurs can leverage "other people's money" to build wealth. The conversation also dives deep into Ben's focus on rolling up accounting firms, the role of AI in accounting, alternative passive investments, and the importance of building a resilient entrepreneurial foundation rooted in purpose and faith.

Key Discussion Points & Insights

1. Military to Entrepreneurship: Breaking the Mold

• Ben’s Transition:
  Ben shares his journey from the Army to corporate (JP Morgan) and witnessing clients amassing wealth through business acquisitions, not just stock market plays.

  "The vast majority of them were business owners...they were continuing to grow their businesses by acquisition." – Ben Kelly [02:26]

• Inspiration:
  Most military officers go into corporate roles, but Ben chose entrepreneurship after realizing how high-net-worth individuals scaled via acquisitions.

2. Business Acquisition with Other People’s Money

• How the Wealthy Structure Deals:
  Wealthy buyers leverage assets as collateral for cheap institutional loans, while beginners can use government-backed options.

  "A lot of them are using other people's money...they're getting institutions to loan them money." – Ben Kelly [03:11]

• SBA 7(a) Loan Program:
  Central to the episode, Ben breaks down this government-backed acquisition loan that allows up to 90-95% leverage for buyers with a net worth under $5M.

  "That is called the SBA 7A loan...made for just the average Joe and Jane to go out and buy business." – Ben Kelly [05:49]
  "You actually can't get these loans if your net worth’s too high." – Ben Kelly [06:00]

• Qualifying for SBA 7(a):

  • Credit Score: Generally above 600 (lower possible with more collateral)
  • Collateral: Home equity, 401k, gold, crypto, or business assets
  • Deal Quality: Business assets (e.g., trucks) can provide much of the needed collateral
  • Business Health: 1.5+ debt service coverage ratio preferred [08:28-08:51]

3. Acquiring Accounting Firms: The Roll-up Play

• Why Accounting Firms?:
  Ben focuses on accounting firms for their high margins (up to 40%), predictable revenue, and attractive multiples.

• Valuation Metrics:

  • Small accounting firms trade at 1x last year’s revenue (not EBITDA).

  "A $1 million accounting firm is probably doing around 40% profit margins." – Ben Kelly [10:26]

  • Cloud-based and subscription models (bookkeeping) command higher multiples (3-4x).

• Roll-up Strategy & Exit:

  • Pooling together firms to reach $10M EBITDA to sell for a 10-12x multiple.

  "When we hit the 10 [million in EBITDA] now you have enough interested buyers that will pay you anywhere between a 10 and a 12X..." – Ben Kelly [12:13]

  • Typical deals involve 20% seller financing and requesting sellers to stay 2 tax seasons for transition.

4. The Impact of AI on Accounting

• Future-Proofing the Business:
  Ben sees AI making tasks like bookkeeping and calculations more efficient but notes human CPAs are still needed for liability and client trust:

  "The smartest accountants out there are utilizing AI to get the grunt work out of the way...but at the end of the day, this is people's money." – Ben Kelly [16:37]

• Acquisition Angle:
  Ben’s vision is to modernize acquired firms with AI, drive down costs, boost client service, and increase sale value.

• Opportunity for Listeners:
  Teaching accountants to use AI is an untapped niche.

  "If you have the wherewithal, you're smart with AI...that's an audience that will definitely listen to you because it would make their life so much easier." – Ben Kelly [18:43]

5. Scaling, Risk, and Entrepreneurial Balance

• Building Infrastructure vs. Growth:
  Both Justin and Ben highlight the dangers of scaling too fast without support structures.

  "Just because I could doesn't mean I should." – Justin Colby [25:02]

• Sustaining Success:
  Key to lasting businesses is replacing oneself with good people and systems, creating a legacy rather than simply chasing growth.

  "The best companies are not necessarily the ones that are constantly taking ground...they’re building their leadership underneath them." – Ben Kelly [24:17]

6. Alternative Passive Investment Strategies

• Ben’s Side Investments:
  Ben discusses his personal testing of alternative investment vehicles, offering actionable insights for entrepreneurs with cash flow:
  • Luxury Watches (The Watch Fund), exotic cars funds, wine, fine art, and buy now/pay later for online coaching [27:10–30:53]
  • Trucking Assets: Buy semi-trucks, have a management company operate them, enjoy weekly cash flow and depreciation for tax benefits.

    "Conservative end, you’re making at least 50% on your money in a year...I'm on track to probably be around 75, 80%." – Ben Kelly [36:02] "If you want to be able to, you get five trucks, and most Americans can live very comfortably off of the cash flow." – Ben Kelly [37:10]

  • Transparent Community: Ben plans a free newsletter ("Alternative Ace") detailing his real returns, inviting others to learn alongside him.

7. Legacy, Motivation & Personal Foundation

• Entrepreneurial Longevity:
  Ben emphasizes grounding oneself in a strong foundation—his is faith—not just profit motive:

  "Money’s not the motivation for me. Like, the most important thing in my life is my faith." – Ben Kelly [22:41]
  "At the end of the day, if it's just to make money, that is not enough." – Ben Kelly [43:38]

• Durability Through Adversity:

  "If you don’t have the fortitude and the foundation to take a super low low...you’re not gonna be in a better place." – Ben Kelly [41:57]

Notable Quotes and Memorable Moments

• On Buying with SBA 7(a):

  "It’s made for the average Joe and Jane...you can get up to 90%, sometimes 95% leverage on the purchase price."
  – Ben Kelly [05:49–06:11]

• On AI in Accounting:

  "People tell their accountants things that they don’t tell anybody else. They still want that person to talk to."
  – Ben Kelly [17:22]

• On the Reality of Entrepreneurship:

  "Just because I could doesn't mean I should."
  – Justin Colby [25:02]

• On the Importance of Foundation:

  "Everyone can take a high...but if you can't take a low...you're going to have your family broken apart, relationships broken apart."
  – Ben Kelly [41:57]

• On Motivation and Legacy:

  "At the end of the day, no one's going to care. But they do care about your legacy that you're going to leave behind and the relationships you do."
  – Ben Kelly [43:38]

Timestamps – Highlights

• Military-to-corporate-to-acquisitions story: [00:45–03:41]
• Understanding OPM & business acquisition funding: [03:41–05:31]
• SBA 7(a) deep dive & requirements: [05:32–08:51]
• Deal structures & accounting firm roll-up strategy: [09:03–12:17]
• AI’s role & opportunity in accounting: [15:10–17:46]
• Scaling & infrastructure lessons: [21:16–25:34]
• Ben’s alternative investment community: [26:13–34:47]
• Trucking as a passive income vehicle: [35:23–40:07]
• Personal motivation, faith, and entrepreneurial resilience: [41:21–43:52]

Connect with Ben Kelly

• Instagram/X: @benkelly1
• Website: benkelly.co
• LinkedIn: Ben Kelly
• Newsletter: Acquisition Ace (business acquisitions), launching soon: Alternative Ace (alternative investments)

Final Takeaway

This episode serves as a hands-on guide for entrepreneurs eager to scale through acquisition—not just organic growth—while reminding listeners to build with both ambition and intention. Ben Kelly’s actionable mindset and strategies empower aspiring business owners to leverage institutional tools and alternative investments, all anchored by a strong sense of purpose.