If an SBA loan is being used to acquire a business, can an investor who is not providing a personal guarantee contribute, say, 90% of the cash injection but keep only 20% of the equity and still get distributions of more than 20% of the net cash flow after debt service?
If not, what’s the best way to structure this deal, given that the investor does not wish to provide a PG.
Deal structure for investor when using an SBA loan
by an investor from New York University
More on Searchfunder
Searchfunder is an online community and toolkit for searchfunds. Over 80% of those involved in searchfunds maintain a Searchfunder.com account to help them network, problem solve challenges, and keep up with the industry.
We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.
We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.
168 views
3 comments
Sign in to see all replies.
Create an account.