SBA Loan Secrets with Heather Endresen - Acquisitions Anonymous e75

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Michael Girdley (@Girdley), Bill D’Alessandro (@BillDA) and Mills Snell (@thegeneralmills) are joined once again by Heather Endresen (@EndresenHeather) for a special episode on SBA lending and borrowing. We talk about SBA generals, lending, borrowing, best practices, advantages, minimum requirements, and much more.
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Show Notes:

(0:00) Morenow.co - Hire Competent Professionals at a Discount
(1:47) Intro
(2:25) Heather's background & her work at Live Oak Bank
(3:53) Who is the SBA and what is SBA borrowing? Advantages of SBA Loans
(5:41) SBA Lenders fall into 2 categories: Cash flow lender or collateral lender
(6:46) When do I need an SBA Loan?
(7:34) How to differentiate a cashflow vs a collateral lender?
(9:57) What is going to happen to your personal collateral when taking an SBA Loan as a borrower?
(10:31) SBA has black and white rules around collateral
(11:32) Refinancing your mortgage while having an SBA loan.
(14:10) Advice for borrowers that look for loan exploits
(16:20) Is it possible to be disqualified due to the personal wealth level?
(17:58) Anyone who is going to be a personal guaranteur needs to fit the qualifications
(21:22) Removing the personal guarantee in the SBA: Shorter amortizations, flexibility & covenants.
(22:57) Minimum requirements and borrowing limits
(25:36) What is the typical order of the process and what are the best practices?
(28:36) Are there businesses that are SBA no go's?
(32:02) Which businesses are people running towards? Which ones should they be running towards?
(33:43) How has COVID affected your ability to underwrite deals?
(36:20) What does it mean to do a QAV?
(38:42) How to check your Bank for SBA Lending?
(40:06) Bank service importance
(44:07) Growing by acquisition: If you pursue a second loan in the same industry there is a 100% leverage opportunity
(48:00) Further recommendations for borrowers
(51:04) Common traits in successful and unsuccessful deals?
(52:47) Things that third party investors need to be mindful of if the entrepreneur is using an SBA
(54:46) What are the considerations for the seller in a seller financing situation?
(57:15) Fixed vs floating interest rates
(58:24) Enterprise value minimum
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