SBA Lender Profile Overview

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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