Hi all, We closed on our first acquisition, a commercial and multifamily electrical contractor in Phoenix, about 4 months ago through an SBA 7(a) loan. Since closing we have put a GM in place and built processes, so the business now cash flows well and needs little day to day time from us. Because of that, we are starting to look at a second electrical contracting business, and we are open to markets anywhere in the US. Our playbook so far has been to hire a GM who also serves as the licensed Qualifying Party (QP) and give them a small equity stake (5%), so they are not required to personally guarantee the loan. We want to repeat that model on deal two, and we would love input from anyone who has done something similar. Specific questions: 1. Second SBA deal soon after the first. How hard was it to get a second 7(a) acquisition loan while the first one was still young? Did lenders want a certain amount of seasoning or operating history on deal one first? 2.Affiliation and loan limits. Did your lender treat the two companies as affiliates under the same $5M cap? Did they require a corporate guarantee from your first company, and how did that affect your structure? 3. QP and personal guarantees under the new SOP. As we read SOPredacted, PGs are required from anyone owning 20% or more. Has anyone had a lender require the licensed QP to guarantee even when they owned less than 20%, as a credit or key person condition? Or did lenders accept a minority equity QP/GM with no PG? 4. Out of state targets. If the target is in another state, how did you handle state licensing, transferring or replacing the QP, and lender comfort with geographic distance? Would really appreciate hearing from anyone who has done a two business SBA rollup in the trades, or lenders and advisors who have financed one. Happy to share what we’ve learned on the first deal in return. Thanks!