THE FINANCING QUESTION
When this becomes relevant.
Start with the business circumstance, rather than choosing a product in advance.
- An eligible operating business is evaluating an acquisition or ownership transition.
- A company needs financing for productive equipment or business expansion.
- A business is considering owner-occupied commercial premises.
- Management wants to compare an SBA pathway with conventional alternatives.
THE ASSESSMENT
What we examine.
These considerations shape the financing discussion and the information required for a meaningful review.
| Review area | What matters |
|---|---|
| Program fit | Borrower, ownership, business activity, financing purpose and the requirements of the relevant program. |
| Financial evidence | Business performance, repayment capacity, existing obligations and any proposed changes. |
| Transaction requirements | Equity contribution, collateral, guarantees, documentation and the lender’s credit criteria. |
THE STRUCTURING PERSPECTIVE
A plan that fits the situation.
SBA 7(a) and 504 structures address different needs and must be evaluated on their own terms. An SBA guarantee is not an approval promise. Program rules, participating-lender requirements and the actual transaction determine whether a pathway is available.
TRANSACTION READINESS
What to prepare.
Begin with a concise overview. Detailed and sensitive records follow through an agreed delivery method.
- Business financial statements, tax returns, ownership records and debt schedules.
- Detailed use of proceeds and the relevant purchase, equipment or property documents.
- Buyer or sponsor background, equity resources and operating projections where appropriate.
The document list is indicative. The agreed service role, lender requirements and transaction circumstances determine the final package.