Assigning an SBA loan

Member resources:

Frequent asked questions:

What is Searchfunder.com?

Searchfunder.com is an online community of searchers, investors, lenders, brokers and other professionals. Over 80% of those involved in searchfunds maintain a Searchfunder account to help them network, hire, and mentor others.

What are the benefits of membership?

In addition to accessing the most active online network of business buyers, Searchfunder licenses research that is simply not cost effective for individuals. Access over 15,000 industry reports and 50,000 transaction financials. You also get monthly credits for contact information for your company sourcing campaign with the option to purchase more at drastically discounted rates. Searchfunder has pre-purchased access from these data providers in order to empower individual buyers and to help searchers level the playing field versus private equity.

Do you have deals?

While we are primarily a buy-side network, we do have hundreds of brokers that regularly post deals to the community.

Can I find an internship on Searchfunder?

Absolutely! We have the industry's largest intern job board. If you are considering a search, the first step is to help another business buyer so you can hit the ground running.

What does it cost?

Searchfunder is a subscription service. We offer flexible monthly, annual and lifetime memberships.

Monthly

$79 / month

Annual

$19 / month

Lifetime

$432 / once

Those who maintain an account with us for over 4 continuous years are permanently added to the community without the need for a membership.

Do I need an MBA to join?

While a large number of our members come from dedicated programs at Harvard Business School, Stanford GSB, Chicago Booth, and other top programs, searching is no longer reserved for the elite. With the current abundance of dry powder in private equity, and an increasing number of business owners reaching retirement age, good deals rarely go unfunded.

Post a question, deal, job, etc...

Make a post...

Complete registration to post.

by a searcher from INSEAD
in Miami, FL, USA

1yr ago

Assigning an SBA loan

Working on closing a deal that has an SBA loan from '20. Seller and I had checked with SBA during DD, and they agreed it could be assigned, however, as we're getting ready to close it seems they think he should be paying it off, especially if he's going to provide a seller note. Does anyone have experience getting existing SBA loans assigned to new owners? Other details: - Healthcare deal in Florida - Willing to accept the personal guarantee - Loan is at 30 yr fixed 4% interest rate

0 Likes

78 Views

reply by a lender 1yr ago
from University of Southern California in Los Angeles, CA, USA

EIDL loans are notoriously hard to assume. Especially if it's a change of ownership transaction and you are also applying for more debt to complete the transaction. The recent guidance is that if the seller is making a profit on selling the business and the buyer is able to take on additional debt, then a pandemic era EIDL loan can be paid back. It should be paid off in full by the seller. If you need help with SBA financing, please reach out. You can reach me here or directly at redacted You can also click here to schedule a meeting with me: redacted. Look forward to chatting!

reply by an intermediary 1yr ago
from Harvard University in Dallas, TX, USA

I just went through assuming an EIDL in December/January. They did require a partial paydown of the loan. They were talking an amount equal to 50% of the seller note but we were able to get that down a little. We later asked the SBA to subordinate to a working capital line, something that has been done easily in the past with traditional SBA loans. In our case, they were going to require a paydown of the EIDL equal to 50% of the line of credit, which didn't make sense to pursue so we are self-funding the working capital. Talking with insiders, the SBA, like many government agencies, is a bit chaotic at this point. Also, the SBA lost money last year so they are not as interested in allowing assumptions of money losing, low interest loans. I am not surprised to hear that the agency is becoming tougher on assumptions.