Secure All Available Collateral
February 19, 2014
The SBA lender “MUST” secure all available collateral up to fully secured. Actual SOP writing prior to January, 2014. This typically included all properties own by the borrower, all stocks and bonds along with life insurance cash values AND any additional cash accounts that are…
How Rental Income Can Help Your Deal
January 24, 2014
With most of the businesses we see these days having tighter cash flow in some previous years this is one of the ways we push them to the finish line. If they are including the CRE (Commercial Real Estate) in the transaction you should be…
How To Protect Investors/Partners
December 6, 2013
When the buyer needs additional down payment monies and brings in a partner, there are ways to protect them. The SBA requires any borrower (or owner in the new corp.) with a 20% or more ownership concern to personally guarantee the entire loan and pledge…
Seller Must Be Gone Within 12 Months
November 6, 2013
This rule comes up many times during the acquisition process and MUST be addressed prior to the loan submission to any lender. The actual rule states: The seller may not remain as an officer, director, stockholder or key employee of the business. (If a short…
Million Dollar Goodwill Cap
October 10, 2013
No such thing as a 1.2 million dollar goodwill cap on loans. There truly is no such thing as a goodwill maximum, as defined by SBA, and this is ALWAYS an individual lender policy. It is for this reason alone that we choose to share…
When Commercial Real Estate Is An Option
September 18, 2013
Why commercial real estate rules matter in your loan structuring. Actual SBA 7(a) Maturity Rule May use a blended maturity or a maturity up to the maximum for the asset class comprising the largest percentage of the use of proceeds. When loan proceeds are used for…
SBA 7(a) Acquisition Loans: Myth or Magic?
July 2, 2013
You hear about them all the time. My buyer secured an SBA loan and my seller walked away with all the money. Does that still happen in 2013? The answer may be right in front of you, and it may happen a lot more than…
What’s most important to your “High net worth” client
October 10, 2022
Three SBA items you need to know to attract top buyers! Did you know that nowhere in the SBA SOP’s 509 pages does it demand a spouse to guaranty an SBA acquisition loan? Do you think this might matter to your high-net-worth client? You bet…
The Time for Expertise is NOW
September 20, 2023
Partial ownerships purchase rule updates! (and SBA fees being waived) If you rely on SBA financing for your transaction closings, then by now you’ve most likely been the victim of the current lender confusion and credit tightening effects happening across the country. Over the last…
Financing Rransactions from $3MM to $8MM is Sifferent in 2024
February 6, 2024
With so many rule and lender changes, here’s the best way to assure an approval. With so many SBA rule changes, credit underwriting economy concerns, and lender discussions about blacklisting certain industries, today’s $8MM transaction has a few more hurdles than just a year ago….
$5 Million Doesn’t Buy What it Used To
March 1, 2024
Have you been to the grocery store lately? Bought fuel for your car or financed a home or vehicle recently? Everything from clothes to online subscriptions seems to have increased double digits in just the last few years. Everything that is, except for the SBA…
If your listings are down, you’re not alone!
April 17, 2024
We’re seeing a slowdown, and so are many of our broker offices. If you’re seeing a listing slowdown, you’re not alone. We’re hearing it from across the country right now. Although I will not mention direct office names, understand that these are higher volume broker…