10% liquidity test:

investor profile

April 03, 2018

by an investor from London Business School in Charlotte, NC, USA

Quick question for searchers / search funds that have recently closed (since Jan 1, 2018):

With the new 10% excess liquidity test for investors, how are folks working with this requirement? Are traditional search funders keeping their investors below 10% or finding alternative ways to deal with this? Are there any self-funded searchers that have tried other tactics?

Cheers, Matt redacted

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commentor profile
Reply by a lender
in Yorba Linda, CA, USA
Great news! The SBA just reversed this rule effective immediately. The ownership limit for the "credit elsewhere" liquidity test is now at 20% instead of 10%. This is good news for all search funds seeking SBA financing.
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