Sale leaseback of property with SBA Loan

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March 26, 2024

by a searcher from Boston College in Denver, CO, USA

Has anyone done a sale leaseback of a property along with a sba loan? I have started researching this but would love to chat with anyone that has experience with this already!

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Reply by an investor
from University of Southampton in Los Angeles, CA, USA
What are you looking to understand? You're effectively entering into 2 transactions, one for the real estate and one for the business, the SBA loan only focuses on the business portion. Any "excess proceeds" generated by the real estate can be considered equity for your SBA loan. Just make sure you show a clear sources & uses table detailing as such. The critical thing to remember is that you must present business financials for SBA review with the adjusted rent and triple net expenses included. Your SLB lease term will likely be north of 15 years which aligns with SBA requirements too.
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Reply by a searcher
from Biola University in Cleveland, OH, USA
I believe Carlo Santelli used these guys - check out their webinar with Acquiring Minds here: https://acquiringminds.co/webinars/using-a-sale-leaseback-to-buy-a-business
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