IS IT A HARD SBA LOAN REQUIREMENT FOR SELLER TO EXIT THE ACQUIRED BUSINESS
In a situation where one is on the verge of acquiring a small business and has secured SBA financing, is it require that everyone who held any percentage of ownership in the business must exit?
I am hearing about an SBA stipulation that former owners must exit the business but can continue to consult... But that seems counter productive if a seller can continue to add great value and continuity in their employee benefits is a carrot that would convince them to remain and stay productive.
Can anyone provide clarity on this?