SBA PG - How to get out
November 04, 2023
by a searcher in Illinois, USA
Our partner who has provided PG for the SBA loan needs to step back due to personal situation. She wont be able to manage day today operations.
She is offering to sell her stake to remaining partners, she wants to remove her PG since she will be gone for extended period of time. SBA lender refused to allow ownership change and asking us to refinance.
What options do we have ?
in Tucson, AZ, USA
add a credit worthy borrower to the note willing to take on the personal guarantee
if it's at least 5 years old and there enough assets in the business, they may choose to remove it
Create a debt service reserve account in escrow that the lender can pull funds out of, fund a minimum 9 months of payments that are due to cover the loan payments.
from Urbana University in Columbus, OH, USA