Seller note as equity contribution in SBA deals

January 04, 2024
by a professional from Emory University in Atlanta, GA, USA
I am working with an investment fund for deals above $5M. However, for good deals sub $5M that require an SBA lender or bank finance, does anyone have any lender recommendations that consider the seller note as equity contribution or “skin in the game?”
Any leads will be most helpful!
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA
I always want to be honest with people. If your goal is to get away with $0 down, it is an admirable goal. But if you are serious about buying a business, I would have plans in place to come up with a minimum of 5% to ensure success. I have seen lenders in the past state $0 down but then come back with an approval that requires a down payment after all, at which point you will have wasted time and money to get there. So be cautious and be prepared to put skin in the game up front if you want to secure a business, whether that is your cash, investor cash, or some sort of gift money. I am happy to discussion options for equity at any time at redacted Good luck!
in Boston Metropolitan Area, USA