Minority ownership and real estate for SBA 7a loan

by a searcher from Northwestern University - Kellogg School of Management

3 years ago

I'm looking at a deal where the primary owner owns 95% of the business and 100% of the real estate (wants to sell the real estate as part of the deal). A general manager was awarded 5% of the company a few years ago.

Does the minority ownership or real estate preclude me from going the SBA 7a route? Has the community heard of creative ways to handle these situations if so?

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lender

The 5% owner must be bought out also if you want to go SBA. There cannot be any rolled equity, unfortunately.

3 years ago | like reply | 1 like

lender from University of Missouri - Columbia

The minority ownership won’t be an issue as long as the 5% owner wants to roll the equity into the new company and doesn’t expect proceeds from the sale. Real estate options are in the ownership structure. Does the company own the real estate? Or is it owned in a separate holding company? Feel free to DM me/email --@----.com if you have questions or you want to see options (I.e. 7A on the biz and something else on the building)

3 years ago | like reply | 0 likes

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