Partnership buyout with in 3 months of acquisition using SBA money

by a searcher

1 year ago

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.

1 like
110 views
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.

1 year ago | 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.

1 year ago | like reply | 0 likes

More on Searchfunder

Just Closed on My First Deal! Reflections and Takeaways for other Searchers

45,152 transactions are available on Searchfunder (now searchable by keyword)

Now everyone has unlimited IBISWorld access

Family office looking for traditional searchers

Examples of self-funded searcher websites

Investor seeking Self-Funded Search Deals

What are market terms for Seller Notes?

2 Best Ways To Find Motivated Sellers, Off-Market Deals

Searchfunder is an online community and toolkit for searchfunds. Over 80% of those involved in searchfunds maintain a Searchfunder.com account to help them network, problem solve challenges, and keep up with the industry.

We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.