Investor Perspective: How Are You Structuring SBA Injection Capital for 10% Requirement? (Veteran Thread)

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by a searcher from United States Military Academy
in Earlysville, VA, USA

4h ago

Investor Perspective: How Are You Structuring SBA Injection Capital for 10% Requirement? (Veteran Thread)

With the SBA's recent announcement regarding veteran-owned business acquisitions and waiving the 10% equity injection requirement from the guarantor, I'm interested in hearing directly from investors whose capital is used to satisfy the required equity injection (and therefore subject to restrictions on distributions while the SBA loan remains outstanding). How are you thinking about the economics? Cumulative PIK return, additional equity participation via step-up, governance rights? For searchers, I'd also be interested in what structures you've successfully negotiated. I'm lucky to be in a position where I don't need investor equity for the initial 10%, but must understand market terms before making informed trade-offs.

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