1. Partial Buyouts are here - sellers ARE subject to the same guaranty requirements as the current SOP. Meaning, if you want to buy 50% of a business, the current owner(s) are still on the hook with a PG if they are over 20%. They would also need to pledge available collateral. If you are buying more than 80%, this can work well. The business will be a borrower/co-borrower. Buyer(s) will provide the PG. Remaining owner retains less than 20% equity and CAN remain employed by the business for an indefinite amount of time. Prior rules hold true on 100% buyouts.

    2. Equity injection on partial buyouts is not required if the balance sheet of the company being acquired meets certain ratios.

    3. Seller Debt can still be used to meet to meet equity injection requirements on full or partial buyouts BUT they can now be on a 24 month standby versus matching the term of the SBA loan. This section of the ruling also states the seller debt can count with interest only payments if the buying group is contributing more than 2.5% of project costs. Inferred that in other cases seller debt can account for the full equity injection requirement. My guess is most lenders are still going to want something from a buyer, but much more creativity will be allowed.

    4. Official expansion rules require no equity injection (or seller financing) if you're buying a company with the same naics code as your current business in the same region. Many lenders offered this before, but now that it's on paper most everyone else will start following suit.

    This is just my quick take, I'm sure others will have input and thoughts to share as well.