Key Change #1 - The borrower is required to inject equity of no less than 10% of the total project cost. Seller debt may not be used to meet this requirement unless the seller is willing to wait until the buyer fully pays off the SBA loan.
Key Change #2 - The Ten Percent Equity Rule applies to every transaction regardless of sale price, loan size or intangible amount.
Look to a trusted business broker who can navigate these new rules and other lender policies to complete a successful transaction.
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