Question about SBA Collateral Requirements

Member resources:

Frequent asked questions:

What is Searchfunder.com?

Searchfunder.com is an online community of searchers, investors, lenders, brokers and other professionals. Over 80% of those involved in searchfunds maintain a Searchfunder account to help them network, hire, and mentor others.

What are the benefits of membership?

In addition to accessing the most active online network of business buyers, Searchfunder licenses research that is simply not cost effective for individuals. Access over 15,000 industry reports and 50,000 transaction financials. You also get monthly credits for contact information for your company sourcing campaign with the option to purchase more at drastically discounted rates. Searchfunder has pre-purchased access from these data providers in order to empower individual buyers and to help searchers level the playing field versus private equity.

Do you have deals?

While we are primarily a buy-side network, we do have hundreds of brokers that regularly post deals to the community.

Can I find an internship on Searchfunder?

Absolutely! We have the industry's largest intern job board. If you are considering a search, the first step is to help another business buyer so you can hit the ground running.

What does it cost?

Searchfunder is a subscription service. We offer flexible monthly, annual and lifetime memberships.

Monthly

$79 / month

Annual

$19 / month

Lifetime

$432 / once

Those who maintain an account with us for over 4 continuous years are permanently added to the community without the need for a membership.

Do I need an MBA to join?

While a large number of our members come from dedicated programs at Harvard Business School, Stanford GSB, Chicago Booth, and other top programs, searching is no longer reserved for the elite. With the current abundance of dry powder in private equity, and an increasing number of business owners reaching retirement age, good deals rarely go unfunded.

Post a question, deal, job, etc...

Make a post...

Complete registration to post.

by a searcher from Columbia University - Columbia Business School
in New York, USA

1yr ago

Question about SBA Collateral Requirements

Has anyone used successful strategies to minimize the personal assets that are subject to the lien requirement that collateralizes the SBA7(a) loan? If a Buyer puts his/her home in their spouse's name would this successfully sidestep the SBA's rule on lien attachment of the Buyer's home? Assume the spouse is not named as a co-Buyer of the business. Appreciate any insights from the community on this topic.

Thanks,

Rich

1 Like

300 Views

reply by a lender 1yr ago
from University of Missouri in Denver, CO, USA

Hey Rich, also I have had success with deals under $500k getting approved with no personal collateral. Otherwise, I think Brad hit the nail on the head.

reply by a searcher 1yr ago
from University of Texas at Austin

Hey Matt,

Took out an SBA loan along with a seller note with a personal guarantee. Unfortunately, I had to default on both when the industry took a downturn. I have since restructured the company and was able to cram down the notes without the investors losing any equity. Happy to share my story about the process and what I experienced.

Best,