Loan Purpose
- Business Acquisition
- Partner Buy-Out
- Key Manager Buy-Out
- Practice Acquisition
- Stock or Asset Purchase
- Expansion through Acquisition
Loan Structure General Guidelines
- 60-75% bank financing
- 25% cash down payment
- Can be combined with subordinated seller carry
- 10 year amortization
- Fully amortized/no balloons
- No pre-payment penalties
Other Loan Program Requirements
- 25% equity SBA required for preferred processing
- Industry or complementary experience necessary
- Solid trends and business performance
- 100% buyout required
- Loans up to $5 million
Down Payment Sources
- Cash/Savings
- Gift l Minority Investor contribution
- 401K (rollover acceptable)
- IRA
- Stocks/Bonds
- Subordinated seller carry may contribute toward equity requirement
Collateral
- Business assets
- Personal guaranties of all 20% principal owners
- Personal assets may be required to meet SBA collateral guidelines
Eligible Business Size and Types
- Business net worth up to $15 million
- 2 year average net profit after taxes can be up to $5 million
- Non-profits not SBA eligible
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