Any Way of Structuring SBA Funded Deals with Contingency Payments?

May 08, 2022
by a searcher in San Francisco, CA, USA
I understand that SBA does not use earnout as part of a deal structure and usually only allow seller notes. Are there any creative ways of building performance based contingency payments into an SBA deal structure such that they do not violate SBA's requirements?
from University of Pennsylvania in Atlanta, GA, USA
If you must use an SBA loan for whatever reason, as with any loan or deal structuring, be creative and focus on the issue you want to resolve and that will help you seek out successful solutions.
from Georgetown University in Raleigh-Durham, Durham, North Carolina, USA
Please keep in mind that I am not a SBA expert. Steve Mariani with easySBA is who I’ve worked with before – he is very knowledgeable of SBA lending and how to get creative when structuring a deal. Good luck!