SBA lending, experience needed?

by a searcher from California Polytechnic State University - San Luis Obispo

11 months ago

Hey all, how is everyone else getting around the experience needed in the industry requirement for SBA lending? 
My partner and I spoke with a lender that mentioned they'll basically reject all deals without industry experience. Or part of the deal has to have a "key employee" as part of the transaction, i.e. give the "key employee" 1% of the company. 

What are the best practices around this in deal structuring? Thanks

3 likes
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9 comments

lender from Sam Houston State University - College of Business Administration

Sounds like you are talking to the wrong lenders. We want to know how your experience will translate to the new business, so it is up to you to prove that you will be able to operate the business. We don't require direct industry experience and only have it on a very few deals. All lenders are different and finding the right one to work with is a must. I am happy to discuss in detail###-###-#### or --@----.com

11 months ago | like reply | 1 like

professional from Marquette University

Agree with ^Lisa Forrest and my advice is find a different lender, like Lisa. You should have relevant experience, meaning managing people, processes, money, etc.

11 months ago | like reply | 1 like

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