Anyone have any experience with using SBA 7A loans to acquire businesses?

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September 11, 2019

by a searcher from University of Southern California - Marshall School of Business in Santa Monica, CA, USA

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Reply by an intermediary
from California State University, Los Angeles in Sacramento, CA, USA
Michael, to be fair, nobody I've ever worked with wanted a 7A, 504b, Omaha Omaha loan or private money 2nd lien. What I mean is many business owners I work with want X and cannot get X. Or they Want X but actually Y is better and they did not know about it until I educated them a bit.

Client right now wanted a traditional bank loan to buy restaurant...and turns out he'll rely on family member to leverage their home in order to buy the business. Family member is totally confident in their grandson. As was a big bank who gave an approval. Grandma is living better with $1500 monthly income from helping grandson.

Point is this...what is goal? Buy business or use a certain left handed blue nosed loan. I tell all borrowers...understand all your options from Insurance Providers to SBA big banks, non-bank business lender, socially funded capital and other alternative capital...know the options prior to deciding on one niche category. It may be reason a buyer puts out less cash or has no prepay or gets better price on acquisition.
happy to talk more about what I mean.
thanks
Dan
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Reply by a lender
in Yorba Linda, CA, USA
I have closed $37 million YTD in this space, and have many search fund clients I could refer you to. Live Oak is also the largest SBA lender in the nation with 25 industry verticals and our M&A focused vertical that covers all industries. Happy to discuss with you and share our competitive advantages. redacted
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