Maximizing SBA 7a Financing How to Structure Deals for Success

Maximizing SBA 7a Financing How to Structure Deals for Success

On this episode of the Investor Financing Podcast, Beau discussed some of the SBA 7a strategies and ways to easily structure 100% finance business acquisition and use high-leverage SBA financing in conjunction with seller carry back/ seller standby or a gift from a friend or a family member to acquire a business with very little capital out of your pocket.

Timestamps
[00:12] Always ask for 3 years of sellers’ tax returns when buying an existing business in a year-to-date interim statement
[00:21] Loans are based on the cash flow of the businesses
[00:26] SBA underwriters are always going to ask for full tax returns, not just the P&L
[00:32] How to get creative on structuring the financing
[00:41] The guidelines say you can get 90% of total project costs and come in with 10% equity injection
[00:48] Asking the seller to leave 5% standby, but what does standby mean?
[01:23] You have to come up with 5% of the total project costs
[01:48] Make sure that you are not lending money that is an investment into the business
[01:58] You have to be credit-worthy and you have to fit the other characteristics of a borrower
[02:05] A way to easily structure 100% finance business acquisition
[02:19] What if the seller is not willing to put anything on standby?
[03:04] How can you structure and use high-leverage SBA financing
[03:22] Watch other SBA and anything investor or business-related videos at http://investorfinancing.tv/

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💥 Thanks for watching 💥
#sba7a #sba7aloan

About Beau: Beau Eckstein is a real estate entrepreneur, TV personality, and commercial mortgage advisor, specializing in construction financing and multi-family lending.

🎥 The video interviews we do on IFP will help you scale your real estate business and learn how to finance your all your projects.

About the Channel: Want to structure your investments in the right and secure way?

Learn great insights and make the right decisions through the Investor Financing Podcast hosted by Beau Eckstein.