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

A 6344 Roswell Rd Sandy Springs 30328 C 678.576.9392

P 678.553.9421 | F 678.553.3551 | E cbeer@cornerstonebankga.com