7 predictions for the new SBA rules’ impact on ETA landscape (some we’re already seeing, even though they’re not effective until 10/1): 1) Lower purchase prices for SBA deals. Because… 2) Meaningfully fewer eligible buyers now that the SBA requires an equity injection from the searcher of at least 5% of project cost. 3) Even greater demand for a non-SBA debt option for deals with $1m - $2.5m of EBITDA. Some entrepreneur is going to see this and capitalize on it. 4) More buyers doing sale-leasebacks or not buying the real estate at all, now that you can’t use it to get longer amortization on the business acquisition loan. 5) Less equity capital available for buyers. We are working to still be able to invest in SBA deals, but I’ve heard multiple investors say they’re probably throwing in the towel. The frequent, dramatic, policy changes make it too much of a hassle. 6) Better transition outcomes now that sellers can stay involved for 24 months instead of 12. 7) Full standby seller notes for 5% of project cost become dramatically more common, since they can still fill half of the required 10% equity injection. Investors won’t want to fill that 5% since that capital can’t receive any distributions except for taxes until full SBA loan repayment. Hit me with your #8 :)