Hey Everyone,
I'm hearing chatter that the SBA has changed lending guidelines such that it is now possible to buy part, not all, of the target business. e.g. it should now be possible to keep the seller in the deal, while purchasing a majority of the business, and controlling the full cashflow, and therefore DSCRs should be able to be dramatically higher.
Has anyone else heard anything around this change? Or where I can find the specific changed section in question? I just came across this ~10 minutes ago, so figured I'd toss it out here for discussion/awareness.
Thanks all.
SBA Lending Guidlines Change
by a searcher
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Any Person (as defined in 13 CFR###-###-#### subject to the guaranty requirements 6 months prior to the date of the loan application would continue to be subject to the requirements even if that Person has changed their ownership interest to less than 20%.