Mix & Match Equity Sources Eligible With SBA-Backed Funding

lender profile

April 17, 2024

by a lender in United States

Unlock the secret to optimizing your SBA-backed business purchase with the right equity injections.

This knowledge will enhance your financing strategy, allowing the flexibility to mix and match these sources to meet the standard 10% down payment requirement.

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Reply by a lender
in United States
Investor funds are also a viable source of equity injection. However, they often come with 𝗠𝗮𝗻𝗮𝗴𝗲𝗺𝗲𝗻𝘁 𝗦𝗲𝗿𝘃𝗶𝗰𝗲𝘀 𝗔𝗴𝗿𝗲𝗲𝗺𝗲𝗻𝘁𝘀 (𝗠𝗦𝗔) that include specific conditions the borrower must meet. Most often, some conditions are not eligible per the SBA SOP.

These conditions must not impose additional repayment obligations or reduce the business's cash flow in ways that conflict with SBA loan requirements.

Not all banks have the same risk appetite and credit policies. If you're heading toward an LOI—Letter of Intent and need guidance navigating these complex funding source waters, let's talk.
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