Partnership buyout with in 3 months of acquisition using SBA money

searcher profile

April 08, 2023

by a searcher in San Francisco, CA, USA

We closed a deal with SBA 7a loan, one of my partner took SBA loan and us a personal guarantor. Due to personal reasons, majority partner wants to exit and be free from any liens on their property .

It has been only 3 months since closing. I have another buyer interested in acquiring his stake. What options do we have ?

Thanks in advance.

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commentor profile
Reply by a searcher
in Maryland, USA
It looks as if the SBA is not fond of changes in ownership or percentage of ownership changes within 12 months of loan disbursement according to this PDF: https://www.sba.gov/sites/default/files/###-###-#### /###-###-#### pdf
But, they still may approve. You would need to reach out to your lender.
commentor profile
Reply by a lender
from University of North Carolina at Wilmington in Argyle, WI 53504, USA
SBA would need to approve, add the new owner as an additional guarantor, and would be unlikely to release the owner who would be going away. Also, the new owner would not be eligible for SBA financing to fund a portion of the business purchase.
commentor profile
+3 more replies.
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