Anyone know of an SBA lender funding 7A acquisition loans prior to July 1?

April 29, 2020

by a searcher from Brigham Young University in Kaysville, UT 84037, USA

I'm hearing that with the 2nd round of Care Act financing for PPP loans that a clause in the act is preventing SBA lenders from offering SBA 7A acquisition loans until after June 30, 2020? Can anyone confirm this or know of an SBA lender funding acquisition loans right now? Any color that can be provided on the stipulations preventing funding?

6 Likes

9 Replies

137 Views

Replies

Reply by an intermediary
from Indiana University at Bloomington in Carmel, IN, USA

I was on a conference call today with Senator Young of Indiana and they are working on separating the 2 programs. He feels confident that this will be done soon. If it doesn't, then when the money runs out, the 7a program will be out of money until the new fiscal year, starting###-###-#### The SBA bankers have been extremely busy with the PPP and I have talked to several who are waiting until the lockdown is lifted as everyone is concerned about cash flow post COVID-19. I just closed one 2 weeks ago yesterday. There are ways to get deals done, usually with a erosion clause to give the seller an amount based upon pre-COVID numbers but protecting the buyer if the new normal is not like the old normal.

Reply by a lender
from University of Missouri in St. Louis, MO, USA

The date of closing is less relevant than having an authorization number. This essentially gets them in the sba allocation. I am actually closing two acquisitions this week (delayed due to the IRS shutdown). Both had authorization numbers already so closing dates weren’t an issue either way. New loans being submitted this week and beyond will be an issue though until more funds are appropriated.

+7 more replies.

Join the discussion