SBA guarantee Stock Purchase

by a searcher from Miami University of Ohio

2 years ago

We have negotiated a share purchase with our target, for various reasons.

Due to the fact the target is an LLC partnership we can depreciate the shares as an asset for IRS purposes.

However, our SBA lender is saying that the SBA SOP requires that all shareholders PG the loan in a share purchase.  

Is there any way around this to still do a stock purchase?  The new entity will have a new EIN which we will be operating under.  The previous EIN will only remain for payroll tax purposes.

2 likes
209 views
11 comments

lender from University of Utah

This sounds like a deal that we could do.Let me know if you are still looking.

2 years ago | like reply | 0 likes

searcher from University of Toledo

The bank has some discretion as to their lending parameters "on top" of the SBA guarantee. Best bet is to quickly move to another lender and share this experience as a pre-screen with lender candidates as to not waste time. Time kills deals.

2 years ago | like reply | 0 likes

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