A Broker’s Guide to Getting an SBA Loan Approved

A Broker’s Guide to Getting an SBA Loan Approved

By Cheryl Beer,  SVP/SBA Lender, Sandy Springs, Cornerstone Bank

• Provide three years’ returns

1. Pre-approval of business financials
2. Subject to buyer’s credit, management experience, outside income, collateral

• Minimum 650 credit score
• Management experience or strong franchise
• 1.2X Debt Service Coverage “DSC” (including all affiliates)
• If goodwill > $500,000, equity = 25%.  In order for seller financing to be considered equity, full standby for two years (no P+I payments)
  • What are reasonable add backs?
  • Does business need a line of credit (Capline)?
  • Does business do any international trade? 90% guaranty
  • Does the deal make sense?

Cheryl Beer –SVP/SBA Lender, Sandy Springs