If an SBA loan is being used to acquire a business, can an investor who is not providing a personal guarantee contribute, say, 90% of the cash injection but keep only 20% of the equity and still get distributions of more than 20% of the net cash flow after debt service?
If not, what’s the best way to structure this deal, given that the investor does not wish to provide a PG.
Deal structure for investor when using an SBA loan
by an investor from New York University
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