What are Earnout alternatives to comply with SBA loan restrictions?

by an investor from Cornell University

2 months ago

As I understand, SBA loans prohibit earn-out arrangements. Just wondering what are other options that can achieve the same goals as earn-out but comply with SBA loan requirements?

Thanks,

3 likes
137 views
15 comments

searcher from Cornell University

Thanks, Alan. I will reach out.

1 month ago | like reply | 0 likes

searcher from University of Pennsylvania - The Wharton School

To the lenders here - can you do this via an escrow, whereby the escrow releases upon the business meeting certain performance criteria? Someone mentioned this but wasn't sure if you can do under the SBA

2 months ago | like reply | 0 likes

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