August 19, 2013 by Diane Loupe Buying a Business, SBA Loans, Seller Articles, Uncategorized 0 comments
A Broker’s Guide to Getting an SBA Loan Approved
By Cheryl Beer, SVP/SBA Lender, Sandy Springs, Cornerstone Bank
- Provide three years’ returns
- Pre-approval of business financials
- 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 firstname.lastname@example.org