I am currently under LOI with an HVAC and Plumbing company in Ohio. The current plan is to use the current owner's license until I can get my own.
SBA banks are saying we need to Roll equity, (in the current LOI) but with rolling equity we can not do an asset deal.
Does anyone have experience using the seller's license and doing an asset deal using an SBA loan?
TIA
How to do an asset sale while using current owners license

by a searcher from Miami University of Ohio
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1. Seller keeps some small amount of equity in exchange for staying on as qualifier. (This creates a different issue for many banks.)
1.5. Depending on if your bank is trying to help you get the deal done or looking for ways to politely say no, you can use a Transition Services Agreement. Seller does not retain any equity, but agrees to remain the qualifier for the transition period. Your bank may or may not balk at this idea, but I know for a fact that is gets done on a regular basis so no "blame the SBA" game this time around.
2. In an easy state, you walk in and walk out with your own license. This works where the governing body only cares about tax revenue.
3. You give (trade or sell) equity to an existing key employee that can be the qualifier. (This has worked for us in places where the governing body intentionally makes it inconvenient to get a license.)