QUICK QUESTION ABOUT HOW SEARCH FUND DEALS AND SBA LOANS

Just a quick point of clarification, in a traditional search fund deal, does the searcher use SBA loans as part of the final capital structure of the deal?

If so, how do they deal with the Personal Guarantee of the SBA loan? Do the investors also agree to PGing the loan? (I find that hard to believe). If not, then the searcher is comfortable having all the downside exposure to the loan?



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