SBA lending - Owner's post-close involvement

by a searcher

1 year ago

Hello

There's a company i'm interested in buying.

what is the maximum allowable time for a seller to stay on board post-closing as allowed by SBA lending?

While it's not necessary for them to stay on board longer than 6 months it would definitely make things a lot easier for me in the long run for them to stay on as long as possible.

Also is there any type of pay/incentive structure you guys recommend in regards to making sure the owner is doing the best they possibly can post-close?

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6 comments

searcher from Northwestern University - Kellogg School of Management

Interesting thread.

5 months ago | like reply | 0 likes

searcher from Yeshiva University - Sy Syms School of Business

Within the last few weeks, there's been rule changes to SBA financing allowing more seller involvement. I'm not an expert - no experience actually :) - but definitely talk to your lender about the latest changes and how that can help.

1 year ago | like reply | 0 likes

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