Scaled Forgivable Seller Note - SBA Compliant

by a searcher from Harvard University - Harvard Business School

Aug 08,2019

Does anyone have an example LOI/IOI or seller note contract with language on a forgivable seller note with the value scaled to a metric? We're looking for something that would be SBA compliant. 

Thanks!

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searcher from Georgetown University - The McDonough School of Business

I'm currently looking at an acquisition with a similar structure. Would appreciate it if anyone has an example of LOI / contract language that was found to be SBA compliant.

02/26/2021 | like reply | 1 like

lender from Sam Houston State University - College of Business Administration

We have actually tried this with the SBA on a deal that went to the SBA for approval for other reasons. (We typically process PLP) We were told that anything like this was ineligible for SBA since it is basically adjusting the purchase price after closing, even if it was for the benefit of the buyer.

09/05/2019 | like reply | 0 likes

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