Any suggestions around seller earn back with SBA loan?

June 25, 2025
by a searcher from Northwestern University - Kellogg School of Management in San Diego, CA, USA
I am working on a deal where seller and I are far apart on the buying price. It is primarily due to our perspective on what the business' potential is over the next few years. My 5-yr CAGR is conservative vs. sellers. To bridge the gap, I am thinking of structuring the deal with some kind of seller earn-back based on performance but where I am running into a wall is this doesnt work with a SBA loan (since earn outs arent allowed on SBA loans as per my understanding). Would appreciate any ideas/ recommendations you might have on the situation. Thank you.
from University of Virginia in Simi Valley, CA, USA
from Columbia University in Fairfax, VA, USA