Anyone with experience using SBA to acquire minority interest?
Looking into the rules and regulations around using an SBA loan to acquire a minority interest in a small business.
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by a searcher
from Columbia University
in New York, NY, USA
in New York, NY, USA
2yrs ago
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by a professional
2yrs ago
from University of Michigan in Detroit, MI, USA
from University of Michigan in Detroit, MI, USA
Glad you're finding answers, ^redacted. And ^redacted is right, this will be hard to execute through the SBA route. There are many other ways to structure the deal, though, so good luck and let me know if I can be of further help.
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by a lender
2yrs ago
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA
We have funded a number of these deals through our lending partners. With the new SBA guidelines, anyone who owns 20% or more of the company post close must sign a personal guarantee. This includes any of the previous owners. Those owners are also exposed to the additional collateral requirements the SBA has for guarantors should the transaction not have sufficient collateral to support the debt based on the SBA guidelines. If none of the sellers will have greater than a 20% ownership post close, then doing a partial buy-out makes a lot more sense. If you would like to talk through your specific situation in more detail we would be happy to do so. You can reach me at redacted
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