I invested in a self-funded search deal a couple of years ago. In connection with a loan increase and modification, the lender is now asking all investors to sign a subordination agreement that includes language saying that no preferred dividends can be paid and no capital can be returned to investors until the SBA loan is fully repaid.
Does anyone know if there are SBA SOPs requiring this, or is the lender simply trying to re-negotiate the deal to lower their own risk?
SBA lender asking for subordination agreement from investors
by an investor from University of California, Berkeley - Haas School of Business
More on Searchfunder
Searchfunder is an online community and toolkit for searchfunds. Over 80% of those involved in searchfunds maintain a Searchfunder.com account to help them network, problem solve challenges, and keep up with the industry.
We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.
We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.
48 views
2 comments
Sign in to see all replies.
Create an account.