Olivia Kim is a small business financing expert and has now been at Guidant Financial for 5 years. She has led her External Financing team for a majority of that time and primarily specializes in consulting clients on SBA loans when it comes to business financing solutions. She has successfully helped numerous clients get funded through SBA, with loan amounts ranging from as low as $50,000 to as high as $3 Million, so she knows a thing or two about this stuff! Today, she will go over what sellers can expect if they have buyers going through this process.<\/p>\n
Quote: \u201cTax returns are key. I can not emphasize this enough.\u201d<\/em><\/p>\n SBA loans are small business loans that are guaranteed by the Small Business Administration. They are government backed product so there are a lot of rules and regulations.<\/p>\n \u2022 Must be U.S. based business \u2022 Borrowers must bring in a minimum of 10% Equity Injection By injecting a minimum of 10% cash into the business it shows lenders that the borrower is committed by having some skin in the game.<\/p>\n \u2022 Borrowers must meet certain standards to qualify for the SBA loan. This saves the seller from wasting time with unqualified borrowers. There is great value to getting an SBA pre-qualification letter. Highly recommend this.<\/p>\n \u2022 Getting a Pre-Qualification letter from a lender can increase chances of selling your business. It\u2019s important to note that getting a pre-qualification letter doesn\u2019t automatically mean that the deal is done, but it can really help speed up the process.<\/p>\n For business acquisitions, the average Equity Injection the Buyer is responsible for is 20%. The maximum loan amount is $5m.<\/p>\n SBA are typically 10 year terms loans.<\/p>\n \u2022 Access to financial information on the business. Tax Returns are key. Quote \u201cNo lender is going to go in blind to approve a loan without seeing how the business itself is doing.\u201d<\/em><\/p>\n SBA are a very powerful tool for both buyers and sellers. It helps buyers achieve their dreams and sellers move forward with their next business venture.<\/p>\n If you would like to find out more about SBA loans and connect with Olivia you can do so using the details below:<\/p>\n connect@guidantfinancial.com<\/a> Olivia Kim is a small business financing expert and has now been at Guidant Financial for 5 years. She has led her External Financing team for a majority of that time and primarily specializes in consulting clients on SBA loans when it comes to business financing solutions. She has successfully helped numerous clients get funded […]<\/p>\n","protected":false},"author":35,"featured_media":1596,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","content-type":"","inline_featured_image":false,"footnotes":""},"categories":[293,17],"tags":[],"dipi_cpt_category":[],"acf":[],"_links":{"self":[{"href":"https:\/\/flippa.com\/blog\/wp-json\/wp\/v2\/posts\/4213"}],"collection":[{"href":"https:\/\/flippa.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/flippa.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/flippa.com\/blog\/wp-json\/wp\/v2\/users\/35"}],"replies":[{"embeddable":true,"href":"https:\/\/flippa.com\/blog\/wp-json\/wp\/v2\/comments?post=4213"}],"version-history":[{"count":1,"href":"https:\/\/flippa.com\/blog\/wp-json\/wp\/v2\/posts\/4213\/revisions"}],"predecessor-version":[{"id":25570,"href":"https:\/\/flippa.com\/blog\/wp-json\/wp\/v2\/posts\/4213\/revisions\/25570"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/flippa.com\/blog\/wp-json\/wp\/v2\/media\/1596"}],"wp:attachment":[{"href":"https:\/\/flippa.com\/blog\/wp-json\/wp\/v2\/media?parent=4213"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/flippa.com\/blog\/wp-json\/wp\/v2\/categories?post=4213"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/flippa.com\/blog\/wp-json\/wp\/v2\/tags?post=4213"},{"taxonomy":"dipi_cpt_category","embeddable":true,"href":"https:\/\/flippa.com\/blog\/wp-json\/wp\/v2\/dipi_cpt_category?post=4213"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Who is Guidant Financial?<\/h3>\n
What is an SBA loan and what are the rules around SBA loans?<\/h3>\n
SBA Rules<\/h3>\n
\n\u2022 Loan range is $25K – $5m
\n\u2022 Business cannot be passive<\/p>\nBorrower Rules<\/h3>\n
\n\u2022 Borrower must be a U.S. Citizen, or have a green card
\n\u2022 Borrower cannot have caused loss to the government<\/p>\nWhat are the SBA benefits for Sellers?<\/h3>\n
\n\u2022 The application process doesn’t require much initial work from the seller.
\n\u2022 Fees associated with the SBA loan is the buyer’s responsibility.
\n\u2022 Seller gets paid upfront for purchase price.<\/p>\nHow to pre-qualify your business for an SBA loan?<\/h3>\n
Pre-qualifying Your Business<\/h3>\n
\n\u2022 Lenders will need financial information to issue a Pre-Qual letter. Tax Returns are key, or Profit & Loss statements, Balance Sheets, and etc.
\n\u2022 Getting a Pre-Qual letter doesn’t mean an automatic approval. The buyer also needs to look good and qualitfy.
\n\u2022 You can go the extra mile and get a Certified Appraisal to get an accurate reading of what your business is worth.<\/p>\nCommon Questions<\/h1>\n
What is a typical deal structure?<\/h3>\n
What are other important criteria to get a loan approved?<\/h3>\n
\n\u2022 The business must have adequate historical cash flow, and no signs of significant losses year over year.
\n\u2022 Satisfactory personal credit score & histories for all guarantors of the loan – this being the buyer(s).
\n\u2022 No recent bankruptcies, foreclosures, or misdemeanors & felony charges.<\/p>\nConnect with us at:<\/h3>\n
\nguidantfinancial.com<\/a>
\n888-472-4455<\/p>\n","protected":false},"excerpt":{"rendered":"