Refinancing SBA 7a loan
Seeking to refinance an SBA 7a loan in addition to taking out an addition 18k to buy out the previous owner. What are my best actions to take? Current 10year SBA 7a loan- 3 years in business with profits.
Unfortunately, it doesn’t sound like you may be able to accomplish your buyout using an SBA loan. SBA loans almost always require down payments from the borrower and there are usually restrictions placed on funds including distributions to owners. If you want to buy out a partner, you’re probably better off working trying to get a traditional bank loan or borrowing against outside collateral – a home equity line of credit, for example.
Your best option, however, would probably be to work with your partner to set up seller financing. This is usually the most flexible route if you can get agreeable terms from your partner. For more information on how to use seller financing, be sure to check out our Ultimate Guide to Seller Financing.
Hope this helps,
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