Is it possible for a non-US citizen to fully back a searcher?

searcher profile

June 03, 2023

by a searcher from University of Guelph in Toronto, ON, Canada

Basically, if a searcher (US citizen) finds a deal, PGs 100% of the SBA loan... am I able to provide 100% of the equity as a non-US citizen?


If I am able to do this, is there an investor list on searchfunder I can add myself to?

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commentor profile
Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA
US Citizens need to own 51% of the company and must sign a full personal guarantee for an SBA 7A loan. The non US citizen can own up to 49% of the company. They will be required to sign a personal guarantee if they own over 20% of the company. The equity can come from the non-US citizen. The US Citizen(s) do not need to provide any equity. However, lenders will want to see relatable experience from the US citizen(s) and possibly some fallback support depending on how stressed the deal is. Some might want them to have some skin in the game as well. Happy to discuss any specific opportunities at any time at redacted Thank you and have a great day!
commentor profile
Reply by an investor
from University of California, Berkeley in San Francisco Bay Area, CA, USA
Yes, you can contribute all of the equity capital. The problem is that the SBA expects you to sign a personal guarantee if you own more than 20% of the company. So you can put in 100% of the cash equity but you can only own < 20% of the company (unless you sign the loan guarantee).
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