Seniority of SBA loan vs. Seller Note

by a searcher from The University of Michigan - Stephen M. Ross School of Business

4 years ago

I am a bit confused on this and would appreciate answers. I believe SBA loan is senior to the Seller Note. Wouldn't there be a conflict then between these two funding sources since the loan payback period (say 10 years) is in most cases longer than the note terms (say 3 years)? Would the SBA loan covenants prevent me from paying off the Seller Note earlier?

1 like
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7 comments

lender from University of Utah

Happy to discuss. --@----.com

10 months ago | like reply | 0 likes

searcher from Babson College - F.W. Olin Graduate School

tagging ^Searchfunder member‌. Along with all the great advice here, I would recommend touching base with Bruce. He has a wealth of knowledge on lending especially re: SBA. I recently discussed some deals with him and learnt a lot of the nuances.

4 years ago | like reply | 0 likes

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