Are there lenders out there that will let you and your wife have wholly separate SBA loans? - Searchfunder

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by a searcher from University of Idaho
in Salt Lake County, UT, USA

2yrs ago

Are there lenders out there that will let you and your wife have wholly separate SBA loans?

Are there lenders out there that will let you and your wife have wholly separate SBA loans. Can I buy up to the 5mill in cap a NAICS code and then my wife with her own entity buy up to the 5mill in the same NAICS code. All other SBA requirements met? If so I would like to talk.

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reply by a lender 2yrs ago
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA

I have to apologize here. There have been so many changes and notices of clarification that it appears I missed one. I just confirmed with one of my contacts at the SBA. The spouse can now qualify for another $5 million in SBA exposure so long as she has no ownership in the existing company the husband owns and is not a guarantor on that loan, and she is buying a company in a different NACIS code. Please keep in mind the lenders still need to do global underwriting and if the other business owned negatively impacts household income it could impact the ability to borrow for more debt for the wife.

In addition, I want to provide some clarification on the new affiliate rules as I have seen some comments below related to that. Previously if you were a minority investor but a guarantor on another SBA loan, that SBA loan fully counted against your guarantee limit. However, now if you are a minority investor (own less than 50% of the business or are not the largest shareholder) and are not the primary manager or in control of the company per the operating agreement, you can now borrow up to another $5 million to acquire another business in a separate NACIS code. So if you have a minority interest in another company with an SBA 7A loan and do not actively manage it, you can now get an additional $5 million in borrowings. This was another huge change. However, if you own the largest ownership interest, own 50% or more of the company, or manage the existing company per the operating agreement, you do not qualify for any additional borrowings.

I hope this information helps to clarify. You can reach me at redacted if you have additional questions.

reply by a searcher 2yrs ago
from University of Southern California in Mid-Atlantic, USA

^redacted‌ thank you for taking the time to clarify this. It seems the SBA program is really expanding and providing some amazing new opportunities. ^redacted‌ thanks for being out in front on this one. It's clear that it takes the entire community to keep up with these changes and a willingness to pass them on to us mortals. - JC

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