How to keep a seller's license post close using SBA 7a financing?

by a searcher

1 year ago

Hello

I'm wanting to buy a property management company using SBA 7a financing.
I have the deal lined up and equity ready to go.

The issue is I would need to keep an active broker's license in order to keep the company active in the state; i have an associate broker/salesperson license which allows me to operate the company but do NOT have an active broker license to keep it active.

From my understanding tho SBA standard operating procedures don't allow for a seller's to keep their license active for the buyer after closing?

Is that true? If so, is there any way around this?

Thanks

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searcher from Georgetown University

From the SBA lenders I've talked with, I believe the seller can stay on for up to 12 months post-close. During this time, you could use the seller's license, but obviously you'd need to replace it during that time frame. I don't think SBA lenders like to see this (and typically want redundancies as it pertains to licenses) but I do think this can be done.

1 year ago | like reply | 0 likes

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