Is it possible to refinance a seller note through SBA?

searcher profile

March 17, 2022

by a searcher from Providence College in Providence, RI, USA

I would like to know the possibility(ies) of refinancing a seller note through SBA. Are there any SBA lenders willing to refinance a seller note post acquisition? What are the conditions needed to become eligible for seller note refinancing through SBA?

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commentor profile
Reply by a lender
from University of Missouri in St. Louis, MO, USA
as stated above, 24 monthly payments (there is still some back and forth on Interest only or if P&I are required) and there has to be an "unreasonable" term to the note.This is usually a balloon.So if the note is 10 years and fully amortizing to match the 7A loan, then refinancing would be problematic.
commentor profile
Reply by a lender
from The University of Chicago in Schaumburg, IL, USA
Echoing the above, two years is the usually seasoning period.In addition, as the purpose of SBA debt is not to enrich or benefit third parties, the company itself must have a need for the loan (e.g. a looming bullet or balloon payment that cannot be handled through conventional sources).
commentor profile
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