SBA eligibility if actively running business remote?

by a searcher from Texas A&M University

1 year ago

Good Morning,
It is my understanding that the SBA will not loan to an absentee buyer. I am looking at a company in Dallas and I am in San Antonio. This a small manufacturing business that has a staff and manager in place. I do not plan on being absentee, but would plan on staying in San Antonio and lead the business "remote" and visiting a couple of times a month. There would not be immediate plans to relocate the manufacturing facility to San Antonio, but that could happen in the future.

I'm just looking for opinions on whether I would be facing an issue with SBA eligibility due to not being physically there.

Thanks
Clayton

0 likes
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9 comments

professional from Florida International University - College of Business

As long as the Debt Service Coverage Ratio covers the salary for the Manager you should have no problem

1 year ago | like reply | 0 likes

intermediary from The University of Chicago - Booth School of Business

You can do it. Brad just did one for one of my deals.

1 year ago | like reply | 0 likes

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