Hello,
Does anyone have experience of refinancing with an SBA loan? Only issue I believe may exist is that I have key employees with have ownership in the business. I know if you try and buy a business with the SBA, the principles have to leave in 12 months. Does it work the same way with refinancing?
Refinancing with SBA Loan?
by a searcher from University of Nevada - Reno
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The SBA rule regarding sellers not being able to stay on only applies to purchases. If it is a business you already own and you have some other minor owners or past sellers that are still involved but you originally financed the purchase differenlty, you can refinance it with an SBA loan. There is no technical limit to the numbers of owners there are for SBA financing. However, anyone that owns 20% or more of the business would be required to sign a personal guarantee and would be subject to any other collateral requirements of the SBA loan program if the transaction is not fully secured by business assets per the SBA Standard Operating Procedure ("SOP").
I would be more than happy to jump on a call to discuss options with you at any time. Using an SBA loan to refinance business debt is a great way to recapitalize the business and push out debt service requirements. I can be reached directly at --@----.com of you can contact me here. Thank you. .