SBA Partial Buy-In. Where does Live Oak Bank stand currently?
Until the SBA issues their technical update, Live Oak is relying on the current guidance, which allows for the personal guaranties to be based on post close ownership with no look-back clause.
Which means currently...If the seller will own less than 20% post close and they aren’t consider a key employee, NO Seller PG will be required.
Until the SBA issues their technical update (IF/WHEN), Live Oak is relying on the current guidance which allows for the gty to be based on post close ownership with no look-back clause. Lenders have been told that the technical update will clarify to only allow those sellers owning less than 20% pre-close (within 6-months) to not require a PG if they also own less than 20% post-close.
Lenders have not been given any guidance as to IF/WHEN the SBA will be issuing any final written clarifications to the last SOP changes.