reply
by a lender
6yrs ago
from California State University, Sacramento
in Seattle, WA, USA
Depending on certain nuances to the deal, we have seen where certain assets can be potentially excluded from the purchase agreement and financed via other mechanisms. Potentially certain assets could be excluded from the transaction structure if done in a way that doesn't jeopardize business operations, debt coverage, buyer's ability to operate, or lender's control. In all cases, the assets being acquired via the SBA loan proceeds must be secured by a UCC 1 lien filing. In this case of a potential Seller sale/leaseback on the equipment, there are sba nuances and the agreements must be reviewed carefully to make sure there aren't business operation control issues. And we'd definitely want to know the reasons why this is being requested as it is outside the norm.