Broker Requesting Proof of Funds materially above Lender’s Equity Injection

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by a searcher from Wayne State University
in Detroit, MI, USA

2h ago

Broker Requesting Proof of Funds materially above Lender’s Equity Injection — Common Practice?

Anonymous because the deal is active. I'm pursuing an SBA-financed acquisition. My proposed structure includes: - buyer-side capital support, - third-party gap capital support, - SBA debt, - potential seller financing if required. The broker recently requested proof of funds/support above the amount originally contemplated and also suggested maintaining an additional working-capital cushion at closing. Interestingly, a financing illustration provided during discussions did not appear to assume that same working-capital requirement, which is one reason I'm now revisiting the structure with my lender. For brokers, lenders, and searchers who have closed SBA acquisitions: 1. How often do brokers request proof of funds above the lender's anticipated equity injection? 2. What documents ultimately satisfied those concerns? 3. Was a lender prequalification letter typically enough, or were brokers looking for something more?

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