Frequently Asked Business Acquisition Questions Using SBA 7a Loans [in 2023]

Frequently Asked Business Acquisition Questions Using SBA 7a Loans [in 2023]

Join Beau in this extended Q&A episode of the Investor Financing Podcast as he reveals strategies for buying a business with minimal out-of-pocket expenses, explains seller financing and the loan process for SBA 7a financing, shares insights and resources on business acquisitions, discusses SBA financing for franchises and current industry trends, weighs the pros and cons of buying a franchise versus an existing business, provides strategies for leaving the corporate world, offers guidance on selecting the right franchise concept, and addresses common questions about SBA loans and financing for startups. Don't miss out on Beau's valuable insights and stay tuned for more episodes!

Here's a small sampling of the questions Beau answered:

How can I buy a business with as little out-of-pocket as possible?
You mentioned seller carryback in business acquisitions. Can you explain what seller financing is?
What are some great resources that might help people with their own business acquisitions?
Mention “Buy Then Build.”
You’re also working with entrepreneurs who want to purchase franchises. How does SBA financing work for buying a franchise?

What if I wanted to start my own business? Can I still get SBA financing for a startup?

Alright, Beau, I think we covered a lot! If you have a question that Beau didn’t answer, hit the comments! And if you liked this video, please subscribe to our channel and hit the like button.

We’ll be doing more of these if you like them!

Til next time…

Timestamps:
(00:03) Introduction to the extended Q&A session in the Investor Financing Podcast with Bill Davis for a deeper dive into business acquisition with the SBA 7A loan.
(03:47) What is the loan process from start to finish and how long does it generally take?
(06:05) The maximum amount that can be obtained with an SBA 7A loan for a business acquisition.
(13:39) Increase in people pursuing opportunities in business acquisition and franchise acquisition.
(14:38) - Mention of the "silver tsunami" and the abundance of small businesses owned by retiring baby boomers.
(15:31) - Importance of actively looking for business opportunities, being creative in sourcing deals, and the potential for off-market transactions.
(15:50) - Opportunities in the business buying space, potential mispricing by business owners, and the advantage of partial seller carry back in business acquisitions.
(16:18) What’s better? Buying a franchise or an existing business?
(16:25) - Comparison between buying a franchise and buying an existing business, with emphasis on the benefits of buying an existing cash-flowing business for quicker cash flow.
(19:38) - Discussion on revenue, margins, and income potential in different industries, highlighting opportunities in acquiring existing businesses.
(23:24) What are some strategies for those who want to exit the corporate world and want to buy a franchise or an existing business?
(25:33) With so many franchise concepts available, how do people figure out what might be a good fit for them?
(27:29) Starting with one business and expanding, transitioning from W-2 income to business income, semi-passive franchises, buying existing businesses with established infrastructure and management.
(28:05) Finding the right fit and working with franchise brokers.
(28:54) What would be the thought process when buying an existing business if you didn’t have the equity injection required by the SBA?
(29:42) Money will come for the right opportunity
(30:26) Who makes SBA loans?
(31:37) How do you identify the right SBA lender? Do I just go to my local bank?
(31:49) Benefits of working with a commercial mortgage advisor
(33:24) What if I wanted to start my own business? Can I still get SBA financing for a startup?
(33:35) Requirements for SBA financing for startups

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💥 Thanks for watching 💥
#SBA7a #SBA7aLoan #SBAFinancing

About Beau: Beau Eckstein is a real estate entrepreneur, TV personality, and commercial mortgage advisor, specializing in construction financing and multi-family lending.

🎥 The video interviews we do on IFP will help you scale your real estate business and learn how to finance your all your projects.

About the Channel: Want to structure your investments in the right and secure way?

Learn great insights and make the right decisions through the Investor Financing Podcast hosted by Beau Eckstein.