SBA Craziness

The SBA is now checking whether anyone in your cap table has defaulted, or is currently in default, on an SBA loan. If so, your application can be automatically declined. This is especially painful when you looking at loan mod or a new SBA expansion loan for an add-on acquisition. SBA is not just underwriting your business anymore. They are also looking at the credit standing of your investors, regardless of how small their ownership stake is... and holding the Sponsor accountable... crazy.