SBA Finance with non resident partner

by a searcher

1 year ago

Hello Search Community.

My partner and I are interested in SBA financing for a business we are looking at. I am a US citizen but he is not. We want to buy the business together and I'm wondering what percentage of ownership I will need to have since I will be the one signing the loan documents. Can he own any part of the business if he's not a US citizen or will I need to be a 100% owner?

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searcher from Northwestern University - Kellogg School of Management

My partner is also outside the US, and as others have said he has to be a minority shareholder, but just by 1%. So, I own 51% and he owns 49% but our operating agreement stipulates that decisions must be made jointly as if we are###-###-#### partners.

We've also run into some issues getting his tax returns for the personal guarantee because they are in German, but we're trying to get them translated. Will see it that works.

1 year ago | like reply | 0 likes

lender from Eastern Illinois University

The above is correct. So long as the company is 51% or more owned by US citizens or lawful permanent residents, he can own a portion of the business. If he owns 20% he would still be required to guarantee the loan. You would need to get his tax returns from whatever country he is from if he has not filed within the United States. I am more than happy to discuss options for you at any time at --@----.com Have a great day!

1 year ago | like reply | 0 likes

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