SBA 7a doesn't allow performance based payouts (earn outs) as part of the loan structure. Given many business that we see have huge volatility, I was wondering if any one have done earn outs without calling them that way and still have gotten their deal structure compatible with SBA 7a?
Maybe a side agreement? Happy to hear your thoughts.
Creative ways of doing SBA compliant Earn Outs (without calling them so)
by a searcher from Harvard University - Harvard Business School
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