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Dec 29 • 6 tweets • 3 min read
SMB Searcher Meet & Greet Calls - 30 minutes ($20)

➡️ Discuss high level factors that are important in the SBA loan approval decision making process

➡️ Walk through a waterfall acquisition model and discuss how deals are structured with common & preferred equity. 2/x
➡️ Walk through how debt service coverage works and how to think about it with evaluating deals

➡️ Cover how to think about sources and uses with SMB acquisitions (what is SBA allowable, what is typical in acquisition structures). 2/x
➡️ Discuss the process of working with @PIONEERCAPADV for your SMB acquisition financing

➡️ Discuss when a bank is required to take a lien on your house.

➡️ Cover the concept of a full standby seller note and when it makes sense for your deal. 3/x
➡️ Discuss the cool hat that you will receive if you close a deal with @PIONEERCAPADV in 2023 (pictured below 🙂)

➡️ Understand when different parties are required to PG an SBA loan (spouses & investors)

➡️Learn what a bank looks for in a well drafted business plan. 4/x
➡️ Discuss what is market for interest rates with SBA acquisitions

➡️ Learn the concept of the forgivable seller note

➡️ Understand how to use @withkumo_ to find on market deals

➡️ Hangout with me for 30 minutes (often longer)! 👌 5/x
➡️ If you're in the early, middle, or late stages of your SMB search, please feel welcome to put a time down on my calendar if you're interested in connecting (link below) 👇6/6

calendly.com/pioneercapital…

#sba #smb #acquisitions #entrepreneurs #independentsponsors

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More from @SBA_Matthias

Matthias Smith - Fueling Entrepreneurs Dreams Profile picture
Dec 29
Business acquisitions financed through SBA loans have very specific requirements that need to be followed. In this thread, I will dive into a few such requirements🧵 👇

#sba #smb #acquisitions #entrepreneurs #independentsponsors
1 - Complete Change of Ownership:

➡️ As the SBA's guidelines currently stand, if you are buying a business as an external buyer (someone that doesn't currently own equity in one), you are required to completely buyout the seller(s). No exceptions.
2 - Consulting Period for the Seller(s):

➡️ SBA guidelines currently enable a seller to stay on for up to 12 months following the date of the closing of a business acquisition. The terms of the consulting arrangement must be approved by your lender & lender's legal counsel.
Read 11 tweets
Matthias Smith - Fueling Entrepreneurs Dreams Profile picture
Dec 29
I have received emails and DMs on one specific topic so I'm addressing it here to save time on communications. My shared SBA searchers docs folder is now available upon request but will no longer be publicly accessible. 1/x
One specific SBA lender wants to crucify me for sharing their debt service coverage model with searchers that want to pursue the American Dream, so it will no longer be distributed. Instead @PIONEERCAPADV will have a better one that will be far superior. 2/x
If you had the link to the Box drive, don't shoot the messenger. Email or DM me and I'll send you a link and by the end of next week you will have the new and improved spreadsheet as well. Long life the self-funded searcher! 3/3 🦅🗽🇺🇲
Read 5 tweets
Matthias Smith - Fueling Entrepreneurs Dreams Profile picture
Dec 28
What Is a Personal Guaranty and When Is It Required with an SBA Loan? A 🧵 👇

#sba #smb #acquisitions #entrepreneurs #independentsponsors
1 - When SBA Requires the Personal Guaranty

➡️ Any 20% or more owner of an applicant business is required by SBA to personally guaranty an SBA loan. No exceptions. 1/x
2 - What Does a Personal Guaranty Mean?

➡️ All of your personal assets are along for the ride on your deal. If your deal goes sideways, the bank essentially can go after everything that you own. 2/x
Read 13 tweets
Matthias Smith - Fueling Entrepreneurs Dreams Profile picture
Dec 28
As year-end approaches, its important to be friendly, respectful and gracious to your deal team partners. Many folks including closers, escrow reps, paralegals, etc. are working late into the evening to make your 'Silver Tsunami' dream happen. 1/x
Often, these folks are not earning overtime. They aren't closing on a multimillion SMB, but are splitting time between your deal, family, and loved ones.

The best way to get your deal the love and attention that it deserves it by being sweet and friendly to them. 2/x
If you were not expecting to close by year-end, this is not the time to make a full court press to pile drive your deal across the 12/31 goal line. Doing so will cause a lot of trouble with the lender, will burn out the closer, and may make them quit! 3/x
Read 4 tweets
Matthias Smith - Fueling Entrepreneurs Dreams Profile picture
Dec 28
2023 predictions 🧵👇

➡️ CRE bros pivot into the SMB space as rising interest rates make real estate more costly to buy.

➡️ Sellers factor in higher debt service costs into their valuation expectations for their SMBs. Businesses brought to market close more quickly as a result
➡️ SBA (hopefully) introduces updated buyer friendly guidelines that allow for partial buyouts with rollover seller equity

➡️ The amount of deal flow increases across the SMB space as prospective entrepreneurs catch wind of the Silver Tsunami 2/x
➡️ High quality threads and easy to digest content about options for structuring SMB deals encourages searchers to closely weigh any and all options for both debt & equity

➡️ More banks enter the large deal parri passu space, providing more options to searchers with large deals
Read 8 tweets
Matthias Smith - Fueling Entrepreneurs Dreams Profile picture
Dec 27
One question has comes up when I speak with clients and prospects on a weekly basis is why some lenders offer fixed rate SBA loans, while others offer variable rate SBA loans. In this thread, I do a deep dive to explain the reasoning 🧵 👇

#sba #smb #acquisitions #entrepreneurs
1 - How SBA Loans Work

➡️ SBA is a risk sharing program that involves 3 parties: 1) the Borrower, 2) the lender & 3) the bank
2 - How SBA Loans Work (Cont.)

➡️ SBA insures (guarantees) a specific portion of the SBA loan amount. This is insurance for the bank to insure against the chance that the borrower defaults. For loans over $150,000, the SBA insures 75% of the loan amount.
Read 18 tweets

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