What are the acceptable sources of down payment for an SBA 7a Loan?

What are the acceptable sources of down payment for an SBA 7a Loan?

In this episode, Beau discusses the acceptable sources of down payment for an SBA 7A loan in a business acquisition and how the source affects loan approval. He explains that while the SOP allows for the complete 10% equity injection to be on standby, most lenders use prudent lending and require a portion of the equity injection to be in cash. Beau explores various ways to fund the equity injection, including seller carry, home equity line of credit, borrowing funds, and investor partners. He also highlights the importance of post-closed liquidity requirements and factors that affect loan approval. Finally, Beau emphasizes the benefits of SBA loans for business owners and offers a free strategy call for real estate investors.

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Takeaways
-Acceptable sources of down payment for an SBA 7A loan in a business acquisition include seller carry, home equity line of credit, borrowing funds, and investor partners.
-Most lenders require a portion of the equity injection to be in cash, even though the SOP allows for the full 10% to be on standby.
-Post-closed liquidity requirements typically include having six to eight months of payments as reserves.
-Factors such as credit score, experience in entrepreneurship, and debt service coverage ratio can affect loan approval.
-SBA loans are the best financing product for business owners, and it's important to find the right funding source for your deal.

Timestamps:
00:00 Acceptable Sources of Down Payment for SBA 7A Loan
02:24 Post-Closed Liquidity Requirements
03:49 Various Ways to Fund the Equity Injection
04:45 Impact of Source on Loan Approval
05:14 Factors Affecting Loan Approval
06:11 Benefits of SBA Loans for Business Owners
06:35 Free Strategy Call for Real Estate Investors

💥 Thanks for watching 💥
#SBALoans #SmallBusinessFinance #BusinessAcquisition #Entrepreneurship #LoanApproval #DownPayment #BusinessOwners #FinancialStrategies #RealEstateInvesting #smallbiz

About Beau: Beau Eckstein is a franchise consultant, commercial mortgage advisor, and business ownership coach who helps entrepreneurs buy, build, and expand their businesses. He assists aspiring entrepreneurs in finding their ideal franchise or business opportunity. Beau's expertise as an investor and business owner allows him to guide clients through the entire process of acquiring, funding, and growing their ventures.

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