Partnership buyout with in 3 months of acquisition using SBA money

by a searcher

Apr 08,2023

We closed a deal with SBA 7a loan, one of my partner took SBA loan and us a personal guarantor. Due to personal reasons, majority partner wants to exit and be free from any liens on their property .

It has been only 3 months since closing. I have another buyer interested in acquiring his stake. What options do we have ? 

Thanks in advance.

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5 comments

professional from Villanova University - Villanova School of Business

Let me know if you need legal assistance on the transfer of the interest. It will all need to be in compliance with your corporate governance and loan agreements.

04/10/2023 | like reply | 0 likes

lender from University of North Carolina at Wilmington

SBA would need to approve, add the new owner as an additional guarantor, and would be unlikely to release the owner who would be going away. Also, the new owner would not be eligible for SBA financing to fund a portion of the business purchase.

04/10/2023 | like reply | 0 likes

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