Seller employment or consulting > 1 year

searcher profile

August 30, 2024

by a searcher from The University of Chicago - Booth School of Business in Santa Cruz, CA, USA

Hi all,

Does anyone have any experience with seller consulting or employment agreements greater than one year? My understanding is that the 2024 SBA SOP allows these, but I am not clear on the specifics.

What factors make them feasible or not feasible - e.g., treatment as employment versus business services, variable pay components, term, etc.?

Thanks!

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commentor profile
Reply by a lender
from California State University, Sacramento in Seattle, WA, USA
^redacted‌ has it right. And the SBA has furthered clarified that in a 100% buyout the seller can only stay on with a consulting agreement for up to a year. Can’t be an employee or employment agreement.
commentor profile
Reply by a professional
from George Washington University in Raleigh, NC, USA
Thanks for the tag, ^redacted‌. ^redacted‌, one of our employment attorneys could assist. Please feel free to send me an email at redacted Thanks, Rick
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