Can anyone explain their experience with SBA backed loan post closing?
I’m particularly interested financial reporting requirements but general pros/cons would be helpful. PM me if you’d prefer.
thanks-
wilson
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by a searcher
from University of South Alabama
in Mobile, AL, USA
in Mobile, AL, USA
5yrs ago
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by a lender
5yrs ago
from University of Missouri in St. Louis, MO, USA
from University of Missouri in St. Louis, MO, USA
It is typically driven by the bank as well as the size of the deal. Most banks require annual tax returns (company and personal) and a PFS for their SBA requirements. If the loan is of size (>$1 million) then we would usually require quarterly financials and possible Aging/Inventory reports if applicable. CPA audits are pretty rare on SBA loans, but I usually recommend a review if you are borrowing >$2 million. This will help if you want to either make another acquisition, or sell down the line..
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by a searcher
5yrs ago
from The University of Michigan in 1075 Gills Dr, Orlando, FL 32824, USA
from The University of Michigan in 1075 Gills Dr, Orlando, FL 32824, USA
I worked with ^redacted at Live Oak and the reporting requirements have been minimal. As Colin outlined, I submit annual tax returns and quarterly statements. Since you are already creating these documents the reporting is a non-issue. My understanding from speaking to others with traditional (non-SBA) loans is that the reporting can be more cumbersome. They typically have tight covenants and if you break one then they will require financial reports more often.
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