SBA guaranteed bank loans was where in actuality the action is actually for company purchases

A year ago, the latest SBA altered its down-payment demands, reducing they out of 30 % so you’re able to 10 % of the sales price. You to definitely move appeared like it can help sales to personnel, but the reality is very staff groups can not built so it amount of guarantee. Typically, prior to now, owner generally mind-funded the deposit. But another SBA criteria, and therefore places brand new seller’s loans with the standby, enjoys fundamentally nixed this one.

The latest standby provision essentially says you to, in the event the vendor earnings the new ten percent down payment, he or she can receive zero dominant costs on the lifestyle of the SBA loan-constantly ten years. Continue reading →