Steps to Sold: The Ultimate Business Sale Podcast
Steps to Sold Podcast is your go-to resource for expert insights on buying and selling businesses. Hosted by experienced business brokers Chris Sater and Brandon Bourgeois of Sunbelt Business Brokers of Louisiana, this podcast provides actionable advice, industry trends, and behind-the-scenes strategies to help business owners successfully navigate the sales process.
Each episode will cover essential topics such as business valuation, preparing for a sale, finding the right buyer, deal structuring, and avoiding common pitfalls. Whether you're a business owner looking to sell, an entrepreneur seeking opportunities, or just curious about the world of business transactions, Steps to Sold will equip you with the knowledge you need to make informed decisions. Tune in for real-world experiences, expert guidance, and valuable tips to maximize your business's value and ensure a smooth transition to the next chapter.
Steps to Sold: The Ultimate Business Sale Podcast
Major SBA SOP Changes with Special Guest Huy Tran from Byline Bank
Summary
In this episode of the Steps To Sold podcast, Brandon Bourgeois and Chris Sater discuss significant changes to the SBA Standard Operating Procedures (SOP) with guest Huy Tran from Byline Bank. The conversation covers the importance of SOPs in guiding SBA lenders, the impact of recent changes on business acquisitions, and the implications for buyers and sellers. Key topics include partial buyouts, seller guarantees, down payment requirements, and the need for buyers to demonstrate financial commitment. The episode also addresses the rising default rates in SBA lending and offers practical tips for navigating the new guidelines effectively.
Takeaways
- SOPs are essential for guiding SBA lenders in loan processes.
- Recent SOP changes will significantly impact business acquisition deals.
- Partial buyouts now require full seller guarantees for two years.
- Buyers must demonstrate financial commitment with down payments.
- Cash components are not considered legitimate ad backs in financials.
- SBA franchise registry is being reinstated, affecting franchise acquisitions.
- The SBA lending capacity may need to be raised to accommodate larger deals.
- Default rates in SBA lending have been rising, indicating potential risks.
- Clear communication between buyers, sellers, and lenders is crucial for successful transactions.
- Organized financial documentation can streamline the SBA loan process.
Chapters
00:00 Introduction to SBA SOP Changes
02:02 Understanding the Importance of SOP
06:46 Recent Changes in SOP Guidelines
07:29 Key Impacts on Business Acquisitions
14:00 Changes in Minority Investor Guarantees
15:18 Down Payment Requirements and Seller Financing
19:43 Raising the SBA Lending Capacity Threshold
22:15 Financial Documentation Flexibility
23:48 Navigating SBA Lending and Business Sales
27:11 Impact of New SOPs on Deal Flow
30:39 Understanding Default Rates in Business Acquisitions
33:35 Interest Rates and Their Effects on Business Loans
39:37 Real-Life Examples of Licensing Challenges in Business Sales
43:11 Navigating Seller Expectations and Market Values
44:32 Strategies for Streamlining the SBA Process
48:47 Understanding Legitimate Ad Backs in Business Sales
55:46 Preparing for New SOP Guidelines
57:12 Maximizing Loan Opportunities Beyond Business Acquisition
Keywords
SBA, SOP changes, business acquisition, lending, preferred lender, financing, business brokers, seller financing, down payment, loan guarantees