Can I get an SBA loan for an acquisition outside the US?
September 22, 2021
by a searcher from University of Pennsylvania - The Wharton School in New York, NY, USA
Is there any scenario in which this is possible?
I've heard mixed reports. Standard guidance is target co. must be us-domiciled. Others have said if the acquiring company is us-domiciled and can produce tax reports, those can used for regulatory approval.
Looking at a company in Canada right now, but my LLC was only formed earlier this year.
Any thoughts/guidance around this would be appreciated!
John
from Indiana University of Pennsylvania in Pittsburgh, PA, USA
C. LOCATED IN THE UNITED STATES
Be located in the United States (including its territories and possessions).
1. The Applicant must be located and primarily operate in the United States (including its territories and possessions), be authorized to conduct business in the state, territory, or possession where it seeks SBA financial assistance, pay taxes to the United States, and to the extent practicable, purchase only American-made equipment and products with the proceeds of the SBA loan.
2. If an Applicant has international operations, the loan proceeds must be used exclusively for the benefit of the domestic operations (as a result, the business and its employees are subject to U.S. and local taxes).
3. Businesses involved in international trade are subject to U.S. trade restrictions.
4. Businesses Owned by Non-U.S. Citizens may be eligible. See Chapter 3, Para. C in this Section for more information.
5. The Applicant may not be owned in whole or part by undocumented (illegal) aliens.
from University of Missouri in St. Louis, MO, USA