Seller note as equity contribution in SBA deals

Hi, we help ETA entrepreneurs secure funding for their searches. We can potentially help you out with funding. Could you fill up this form: https://form.jotform.com/ridethewave/funding-ally, and please text###-###-#### or email --@----.com and I can see if we can help you out.

The new SBA rules state that you can get away with $0 down so long as the seller carries back a note for at least 10% of the purchase price on full standby for a minimum of two years (meaning no required payments for at least two years). We have over 60 SBA funding partners we work with, and I can tell you in general, although the SBA is allowing 90% financing with no equity, most lenders are not allowing this except for some rare circumstances. We have plenty of lenders that will do the deal with 5% borrower equity so long as the cash flow and deal makes sense, but not a zero equity unless one of the following items exists (and even not necessary then with all deals): 1) The Borrower is an employee of the business already and is buying out the owner; 2) the Borrower has substantial direct industry experience; and 3) the deal is largely or fully backed by hard collateral like equipment, real estate, or outside personal assets under the personal guarantee.

I always want to be honest with people. If your goal is to get away with $0 down, it is an admirable goal. But if you are serious about buying a business, I would have plans in place to come up with a minimum of 5% to ensure success. I have seen lenders in the past state $0 down but then come back with an approval that requires a down payment after all, at which point you will have wasted time and money to get there. So be cautious and be prepared to put skin in the game up front if you want to secure a business, whether that is your cash, investor cash, or some sort of gift money. I am happy to discussion options for equity at any time at --@----.com Good luck!