12 Mar Boss Talk: SBA and the Sale of Your Business
On this episode of Boss Talk, Jim Parker and Carey Sobel interview Lynne Singletary of 44 Business Capital (a division of Beacon Bank) about how SBA lending drives many small and mid-sized business sales, especially in the $750k–$2M range. Lynne explains the SBA’s 75% guarantee, why SBA loans differ from conventional collateral-based lending, and clarifies that banks—not the government—make the loans while following SBA SOP guidelines. They compare 7(a) (flexible, common for acquisitions) vs 504 (asset-driven), discuss typical 10% equity injection, working capital add-ons, personal guarantees and collateral rules, DSCR targets, rates, and the importance of using a PLP lender to avoid delays. They cover pre-qualifying businesses and buyers, required documentation (tax returns, interims, transcripts), landlord lease/waiver hurdles, seller financing rules, and how poor preparation often kills deals.
