Does anyone have a good resource for creative deal structuring using SBA?

searcher profile

July 22, 2023

by a searcher from Utah State University - Jon M. Huntsman School of Business in Salt Lake City, UT, USA

I am looking to better understand options and creative ways deals have been put together using seller notes, performance guarantees, equity retained and balloon payment timelines. It could be as simple as a percentage breakdown of purchase into the various buckets. e.g. 50% of the purchase price paid up front, 10% seller's note, 40% of purchase tied to performance guarantee over two years - revenue growth required for payout X%.

For context, I am working with a seller who wants a high multiple (accounting for future performance of the company). The only way I see a deal happening is with buyer-friendly terms with performance hurdles. Curious how others have handled this situation.

Thank you!

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commentor profile
Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA
I would be happy to have a discussion with you about ways to put a deal together and around using seller notes. We are a Commercial Loan Brokerage shop with over 500 funding partners and over 50 SBA funding partners. You can reach me here or directly at redacted
commentor profile
Reply by a searcher
from University of California, Berkeley in San Francisco, CA, USA
SBA is a gov program. So its intended to be pretty cookie cutter. However there's some variance in interpretation by lenders. Best to talk to lenders on their approach and include banks that can show you SBA/non SBA side by side.
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