Common misconceptions about SBA loans:
📌 Misconception: You always have to pledge a lien on your house
➡️ Reality: The lien is only required if you have 25% or more equity in your house. 1/x
#sba #smb #acquisitions #entrepreneurs #independentsponsors
📌 Misconception: You always have to pledge a lien on your house
➡️ Reality: The lien is only required if you have 25% or more equity in your house. 1/x
#sba #smb #acquisitions #entrepreneurs #independentsponsors
*Continued*
📌Misconception: When you're buying a business, your 10% down payment needs to be all cash
➡️ Reality: You have the ability to do 5% cash (based on the total uses of funds) if the seller holds 5% on Full Standby as a seller note. 2/x
📌Misconception: When you're buying a business, your 10% down payment needs to be all cash
➡️ Reality: You have the ability to do 5% cash (based on the total uses of funds) if the seller holds 5% on Full Standby as a seller note. 2/x
📌 Misconception: Anyone in the ownership group has to personally guaranty the SBA loan
➡️ Reality: SBA's requirement is that any 20% or more owner of the business has to personally guaranty. 3/x
➡️ Reality: SBA's requirement is that any 20% or more owner of the business has to personally guaranty. 3/x
📌 Misconception: Having a prior bankruptcy prevents you from being eligible for SBA financing
➡️ Reality: False. This falls to lender discretion. As long as you didn't cause a loss to the government, you are still eligible for SBA financing. 4/4
➡️ Reality: False. This falls to lender discretion. As long as you didn't cause a loss to the government, you are still eligible for SBA financing. 4/4
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