Share Purchase Bank Setup

searcher profile

November 07, 2022

by a searcher from Baruch College-The City University of New York - The Zicklin School of Business in New York, NY, USA

Anyone have advice about how to go about setting up a business bank account so SBA can transfer funds? Since it's an SPA, bank needs to transfer funds to an account owned by the business but if you technically haven't closed yet, then you don't own the business to set one up.

A suggestion from someone was to open an account with the owner and once the transaction closes, kick them out. Is there another way?

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Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA
I would agree with Ben and try to setup the first account with your lender. However, if you are setting up another entity to own the stock of the business, you can set up an account in that entity name and then set up the DBA once you close.
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Reply by an investor
from University of Nebraska in Austin, TX, USA
Ask the lender you are using, they may have a preference or best practice they can share.
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