Hi ^redacted‌, we’re hearing the same from many clients - while finding the right deal remains challenging, capital raising has become a key area of focus, especially with the SBA rule changes going into effect. Some clients are trying to push through before the clients. Others are exploring other flexible fundraising structures such as debt instead of equity (which you can creatively structure similarly to equity) to align interests and navigate the current environment. Terms in investor agreements - particularly around governance, economic rights, and exit terms - are being discussed in light of this. We’d be happy to share what we’re seeing in live deals. Feel free to schedule a consultation call with us to speak more or check out our other resources, including our podcast, acquisition insights course, and soon releasing book, at deanstreetlaw.com/links

Prior to 5/2023, minimum equity requirement was 20%. Prior to 2010, max loan was $2 M. Supply of businesses available for sale have not changed in 35 years of my M&A Advisory. Deals have closed all these years with more or less same structure. All that has occurred is that lowering equity to 10% has brought more buyers to the table and no-skin-in-the-deal buyers have increased. Recent changes in SBA are relatively small compared to the big ones mentioned above.