Convertible debt with SBA financing
December 23, 2020
by an investor from University of California, Berkeley - Haas School of Business in San Francisco Bay Area, CA, USA
Does anyone know how SBA lenders views convertible debt for PG purposes? Example: Investor provides financing in form of a convertible note with a right to convert it to 30% of fully diluted equity only after the SBA loan is paid off. Would the investor get caught in the 20% personal guarantee rule in this case?
from Harvard University in Toronto, ON, Canada