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Are You Too Big for an SBA Loan? Not Likely.
The SBA loan program is a popular option for small businesses seeking funding for growth and expansion. But there is a catch: your business must meet size requirements to qualify. We’ll explain the SBA's size standards and how they apply to you.
What Business Owners Need to Know About Equity Buy-ins
Equity buy-ins, where a non-shareholder purchases a portion of equity, are becoming increasingly popular. As succession planning and equity retention strategies gain traction, so do partial equity buy-in loans.
Late Business Loan Payment Management for Small Business Owners
For independent business owners facing distressed loans, staying on top of payments is crucial for maintaining a solid financial standing. If you anticipate financial difficulties lasting a considerable time—like a year—it's vital to communicate openly with your lender. Short-term solutions, such as a three or six-month forbearance, can offer immediate relief, but consistently delaying payments past 60 days can raise serious concerns with your financial institution. Extending overdue payments can strain relationships with lenders and adversely affect your credit score, making it a less effective long-term strategy.
Utilizing Escrow in Acquisition Deals for Small Business Owners
For small business owners considering acquisition deals, understanding escrow agreements is crucial. These agreements are often used in 100% financed loans to provide a safeguard through clawback provisions. Typically, the seller receives most of the purchase price at closing, wired directly from the lender.
Equity Injection Rules for Small Business Acquisition Loans
When discussing financing options for acquisition loans, small business owners often want to know about cash down payment requirements, seller financing options, and details related to equity buy-ins and seller guarantees. This article focuses on the cash down payment requirements for bank loans in small business acquisitions.
Acquisition Pro Formas for Bank Loans
This article aims to help small business owners understand acquisition pro formas from a lender's perspective. It's important to note that pro forma templates are widely available in our industry. You can obtain one from your contact at your bank or financial institution, as well as from various vendors in the M&A ecosystem.
Navigating Your Existing EIDL Loan and Lien
If you're a small business owner, understanding how to manage your Economic Injury Disaster Loan (EIDL) is crucial, especially if you're considering applying for a new loan. According to the latest Standard Operating Procedure (SOP) 50 10 7.1 from the SBA, any EIDL approvals over $25,000 come with a lien on your business assets. This applies to both loans and advances received through the COVID-19 EIDL program.
Understanding Spousal Guaranty Requirements for SBA Loans
As a small business owner, you might be wondering about how your business loan will affect your spouse and shared assets. We're breaking down the essentials of spousal guaranties and the recent changes from the SBA you need to know.
Back Taxes and Bank Loans: What Small Business Owners Need to Know
As a small business owner, understanding how back taxes can impact your ability to secure financing is crucial. Neither conventional lenders nor the SBA are eager to discuss loans aimed at paying back taxes, especially those owed for multiple years. This challenge affects businesses across all industries, and it's important to recognize that financial advisors facing this situation often encounter additional scrutiny from lenders. Even when we clarify the differences between financial planning advice and the operational skill set of a small business owner, it’s no surprise that most banks have internal policies deeming a delinquent tax debt an ineligible loan purpose.
Equity Buy-ins Now Eligible for SBA Loans
The SBA has been a valuable resource for various financing needs, but partial equity buy-ins—where someone purchases a portion of a business's equity—have been off the table—until now. The SBA has revised their operating procedures, and one of the major impacts for small business owners is that partial equity buy-ins are now allowed under their partial change of ownership rules.
Maximum Interest Rates for SBA 7(a) Loans
Understanding the maximum interest rates for SBA 7(a) loans can help you make informed borrowing decisions for your business. Here's a breakdown of the current rates based on loan amounts:
A Look at SBA Fee Changes for Small Business Owners
With the recent updates to the Standard Operating Procedure (SOP) 50 10 7.1, several fee structures have shifted from the previous SOP 50 10 6. So, what changes should small business owners be aware of?
All Your Business Loan Collateral Questions Answered
When applying for an SBA loan, it's important to know that requests aren’t rejected solely due to insufficient collateral. In fact, one of the key reasons lenders utilize the SBA program is to assist applicants who demonstrate repayment ability but may not have enough collateral to cover the loan in case of default.
Match the 5 Cs in Business Loan Qualification
When considering a potential business loan, it’s essential for small business owners to focus on key factors that ensure a smooth financing process and future success. At LoanBox, we’ve identified five critical elements that will guide you through this complex journey, ensuring alignment and preparation for seamless integration of the loan into your operations.