All,
I am involved with a situation of a small company acquiring a bigger company. I am prospectively providing equity to support the overall transaction. The small company has an existing SBA Loan at present, however the combined transaction will involve a new lender providing the acquisition capital for the purchase of the bigger company and some refinancing of existing debt at the small company.
Does the SBA require that their existing loan be extinguished in this scenario? Or is there a scenario where the SBA loan would exist with the small company post new acquisition and refinancing?
Any insights here would be appreciated; and thanks in advance.
Regards,
David
Inquiry on SBA loan repayment rules on a subsequent acquisition
by a searcher from University of Pennsylvania - The Wharton School
More on Searchfunder
Searchfunder is an online community and toolkit for searchfunds. Over 80% of those involved in searchfunds maintain a Searchfunder.com account to help them network, problem solve challenges, and keep up with the industry.
We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.
We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.
need to show a 10% improvement in cashflow. Happy to talk in more detail to make sure we’re getting all the points. There are also issues of debt service for existing and acquisition company that will need to be considered.