SBA Financing with Live Oak Bank

Transcript

Andy and JT welcome you to another episode of The Deal Board Podcast. This week, they sit down with Tammy Roberts and John Wahl from Live Oak Bank to discuss all things SBA financing. Tuning in, you’ll hear all about the most important things for sellers to know about prequalification for SBA financing, the benefits of prequalification, how a buyer’s experience comes into play, and more! You’ll be reminded that not all SBA lenders are created equal, and hear from our expert guests how you can find a good Preferred Lender. From the different criteria lenders have, to the prescreening for SBA financing, to the actual role of the SBA, this episode touches on it all. To learn more about the nuances of SBA financing, be sure to press play now!

Listing of the Week:
A Spinal Implant Manufacturing Business/Technology Company, including four patents and 510(k) FDA compliance, is on the market in Texas for $1,600,000. The owner is willing to stay on for a few months as a consultant, and the business is relocatable. This deal includes over $500,000 in inventory. Linda is looking for offers from strategic buyers who have access to spine surgeons. For more information, call Linda Boswell at (817) 755-1026 or email her at [email protected].

Deal of the Week:
T. Patel bought a restaurant called The Bistro at St. Augustine Airport. With a background in hospitality, this gem was one Mr. Patel could not resist. The restaurant can seat 85 pax, and the new chef is creating a new special every week. For more information, call Richard Murray at (904) 903-2388 or email him at [email protected].

Key Takeaways

[00:00] Introducing today’s guests and topic.

[01:24] How to educate sellers on prequalification for SBA financing.

[06:36] How Live Oak Bank considers add-backs with SBA financing.

[08:49] Why prequalification for SBA financing is beneficial.

[10:39] When they consider the buyer’s experience.

[11:58] The benefit of selling a portion of a business through SBA financing.

[13:24] Listing of the Week: Linda Boswell (Dallas/Fort Worth Central) is selling a Spinal Implant Manufacturing Business/Technology Company in Texas for $1,600,000.

[15:59] What makes for a Preferred SBA Lender and how to recognize a good one.

[22:29] Why all lenders have different criteria and how prescreening works.

[25:35] Deal of the Week: Richard Murray (Jacksonville) sold The Bistro Restaurant located at St. Augustine Airport to entrepreneur T. Patel in cash.

[29:21] Important factors for sellers to understand when applying for SBA prescreening.

[31:12] How they evaluate seller/buyer salary and ‘rainy day’ funds during prequalification.

Show Notes

Quotes:
“My top request from sellers in order to prequalify their listing with your brokers is clean financials and current financials.” — John Wahl [0:01:34]

“Prequalified businesses provide a larger audience of buyers, I believe.” — John Wahl [0:09:33]

“A misconception is that the SBA gives money. The SBA is not the lender; they’re almost like an insurance company.” — Tammy Roberts [0:21:54]

Mentioned in This Episode

• The Deal Board Podcast
• Subscribe to The Deal Board Podcast YouTube Channel
• United Franchise Group
• Transworld Business Advisors
• Transworld on LinkedIn
• Transworld on Facebook
• Tammy Roberts on LinkedIn
• John Wahl on LinkedIn
• Live Oak Bank