Does the SBA give you credit for operational expertise?
Does the SBA give you credit for your knowledge and experience if you are purchasing a company in an industry in which you have operational expertise?
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by a searcher
from The University of Chicago - Booth School of Business
in Chicago, IL, USA
in Chicago, IL, USA
1yr ago
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by a lender
1yr ago
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA
Yes, of course. It is of huge value. I always tell clients the two most important things for an SBA 7A lender is having an adequate debt service coverage ratio and having direct industry or relatable industry experience.
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by a searcher
1yr ago
from University of California, Berkeley in Seattle Metropolitan Area, WA, USA
from University of California, Berkeley in Seattle Metropolitan Area, WA, USA
Certainly didn't help, and was a part of the SBA commentary. But I think anyone acquiring can give significant reasons why their prior experience is additive for a new business/industry. If you can't, you'd be asked to think how it is anyhow. Support for lenders will be important as the deal goes to credit, and particularly if you're borderline in any terms / structure, it's better to be familiar than not.
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