Anyone have any experience with using SBA 7A loans to acquire businesses?
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by a searcher
from University of Southern California - Marshall School of Business
in Santa Monica, CA, USA
in Santa Monica, CA, USA
6yrs ago
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by an intermediary
6yrs ago
from California State University, Los Angeles in Sacramento, CA, USA
from California State University, Los Angeles in Sacramento, CA, USA
Michael, to be fair, nobody I've ever worked with wanted a 7A, 504b, Omaha Omaha loan or private money 2nd lien. What I mean is many business owners I work with want X and cannot get X. Or they Want X but actually Y is better and they did not know about it until I educated them a bit.
Client right now wanted a traditional bank loan to buy restaurant...and turns out he'll rely on family member to leverage their home in order to buy the business. Family member is totally confident in their grandson. As was a big bank who gave an approval. Grandma is living better with $1500 monthly income from helping grandson.
Point is this...what is goal? Buy business or use a certain left handed blue nosed loan. I tell all borrowers...understand all your options from Insurance Providers to SBA big banks, non-bank business lender, socially funded capital and other alternative capital...know the options prior to deciding on one niche category. It may be reason a buyer puts out less cash or has no prepay or gets better price on acquisition.
happy to talk more about what I mean.
thanks
Dan
Client right now wanted a traditional bank loan to buy restaurant...and turns out he'll rely on family member to leverage their home in order to buy the business. Family member is totally confident in their grandson. As was a big bank who gave an approval. Grandma is living better with $1500 monthly income from helping grandson.
Point is this...what is goal? Buy business or use a certain left handed blue nosed loan. I tell all borrowers...understand all your options from Insurance Providers to SBA big banks, non-bank business lender, socially funded capital and other alternative capital...know the options prior to deciding on one niche category. It may be reason a buyer puts out less cash or has no prepay or gets better price on acquisition.
happy to talk more about what I mean.
thanks
Dan
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by a lender
6yrs ago
from California State University, Sacramento in Seattle, WA, USA
from California State University, Sacramento in Seattle, WA, USA
Thanks for the shout-out Travis! It was such a pleasure working with you back then. I knew you'd be a huge success and what a thrill for me to have been able to help support your CEO aspirations! Still helping entrepreneurs all these years later. :)
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