SBA Trade Certification Requirement for Buyer in Florida?

by a searcher

2 years ago

Does the SBA have a requirement in the state of Florida (or in broader US) that the buyer has to have the specific trade license (ex. HVAC, plumbing, electric, GC) before the acquisition can close or can the buyer obtain the license after close but within the 12 month seller transition period?

^Searchfunder member‌, ^Searchfunder member‌ ^Searchfunder member‌ ^Searchfunder member‌

1 like
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6 comments

searcher from Dartmouth College - Tuck School of Business at Dartmouth

Another thing to look out for is whether a particular licenses has any tethering to an EIN. Some licenses are held at the individual level and some at the company level, so depending if you do an asset sale or a stock sale this may come into play.

1 year ago | like reply | 0 likes

lender from California State University, Sacramento - College of Business Administration

Reliance on the seller post close is dicey. In many cases the relationship with the seller deteriorates. If the seller holds the license, then you can see where that can lead. Same with reliance on key employees that hold licenses. Tight labor market makes that solution potentially tough too. Licenses tied to seller notes and employment contract might be acceptable mitigants?? You need to make your case to the lender on structure and mitigations for you not having the required licenses and why relying on others isn’t too big a risk.

2 years ago | like reply | 1 like

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