This borrower had no experience in the painting industry and had never owned a business before. This is usually a deal-breaker, but our lender was comfortable with the situation due to our client’s strong cash-flow.
How We Secured The SBA Loan!
We were able to secure a $395,000 SBA loan which included the purchase of the business, working capital, inventory and supplies. Additionally, the seller was permitted to carry a seller note in the amount of $180,000. He was allowed to receive payments on the seller note immediately. This is usually not the case, as most lenders will require a two or three-year hold on seller note payments. However, this seller would have canceled the deal if he had to wait to get the money.
In the end, everyone won!