SBA lender asking for my LP’s tax returns

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by a searcher from University of Colorado at Boulder
in Los Angeles, CA, USA

4yrs ago

SBA lender asking for my LP’s tax returns

So I’m trying to get SBA 7a/504 loan for my real estate fund’s hotel project and one of my LPs is over 20% of the fund. The bank is requesting tax returns from my large LP, which we would like to avoid. Has anyone else dealt with this issue? Any thoughts/advice appreciated. Thanks

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reply by a lender 4yrs ago
from The University of Chicago in Schaumburg, IL, USA

Spot on; as a SBA lender, we are required to fully diligence and obtain an unlimited guaranty from anyone having a beneficial interest in the target of 20% or more. 10% - 19.9% holders are likely to be diligenced but do not have to guaranty. Holders at a level of less than 10% may or may not be seriously diligenced.

reply by a lender 4yrs ago
in Chicago, IL 60604, USA

Hi Pete, SBA requlations require that any 20% or more owners of a Small Business Applicant must provide an unlimited guaranty of the SBA loan. Let me know if you would like to disucss in detail further.