There is a strong restaurant services business that I am speaking to that has a hood vent cleaning division doing $4M in recurring service revenue with 20% EBITDA margins. They are considering doing a divestiture of this division (which has decent separated financials), but in order to make this work, I need to have the seller hold <20% equity in the NewCo.

Since the existing company would continue to operate with its other divisions, this would be an asset sale to NewCo. I have heard varying feedback from a few SBA lenders about whether a seller is allowed to hold equity in NewCo with an asset sale. Many have said that is not allowed under SBA rules (so, seller equity only allowed under a stock sale), but some are willing and say they have done asset sales with seller equity before.

I'd love introductions to any SBA lenders (or conventional lenders) who think they could make this happen.

Thanks in advance!