I'm looking at a couple of potential deals where the selling owners prefer offers that retain their involvement for extended periods after closing (1 yr+). Given my vision for growth, this may also be ideal for me in these cases. I would also like to take advantage of some of the current SBA incentives, and I like the flexibility of the extended amortization compared to traditional senior debt. However, as far as I understand, the SBA requires 100% change of control for 7a loans and restricts post-closing owner involvement.

Given all of this, I'm trying to understand if anyone has any creative solutions to use SBA debt while also retaining seller involvement, or otherwise negotiating around this conflict. Is there a type of involvement that would be allowed? Does it make a difference if they convert to independent contractors? Do the rules differ the selling owner who stays is a minority shareholder?

I've discussed with a few different banks and gotten different responses varying from - "No chance, must use conventional loan." to "12 months contracting is ok, and probably ok after that too as long as the bank doesn't know about it." Tips or outside resources appreciated.