Two partners and SBA limitation

by a searcher from University of Pennsylvania - The Wharton School

6 months ago

How can one maximize the SBA loan with two partners and take out the full amount of up to $10mm by overcoming the exposure limitation of $5mm per business? Does anyone have any experience with this? Thank you in advance.

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searcher from University of Pennsylvania - The Wharton School

Thank you all. Very helpful color.

5 months ago | like reply | 0 likes

lender from Eastern Illinois University

Agree with the above. The only way two partners could maximize their exposure using SBA would be for one partner to own 81% or more of one business and acquire that using SBA financing while the other partner owns under 20%, and then switch it for the next business. The SBA exposure only counts against the guarantor, so in this way you could partner on two separate deals and get up to $10 million, but one would control one deal and the other the second deal. If you would like to discuss you can reach me at --@----.com Good luck.

6 months ago | like reply | 1 like

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