SBA Backing

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May 21, 2021

by a searcher in Branchville, VA 23828, USA

I’ve read some information that conflicts with I have researched. Has a law been passed that changed SBA 7a backing to 90%?

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Reply by an investor
from Thomas A. Edison State College in Naples, FL, USA
Think you're confusing the temporary guarantee increase from Cares Act 2.0 from 75-90% with the equity injection requirements. Technically still only needs 5% cash minimum but most deals and most lenders want to see 10% down still. Additional seller financing helps. Remember, the guarantee % is a percentage of whatever the LOAN amount is, not a percentage of the whole transaction.
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Reply by a searcher
from Stevens Institute of Technology in New Jersey, USA
Vincent, do you mind to share which bank you spoke to? I am in touch with Byline bank and they are still sticking to 80+10+10 model, maybe it is the size of the deal that the structure changes, like >$1M vs <$1M?
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