Massive Changes to the SBA 7a loan program in 2023
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- Опубликовано: 4 июл 2024
- #sba #smallbusiness #sba7a
In this video, Ray [an actual SBA 7a Lender] discusses the eight biggest changes to the SBA Seven A loan program. These changes include the removal of minimum equity injection requirements, the introduction of partial change of ownership transactions, the implementation of the "do what you do" philosophy, an overhaul of the SBA approval process, the expansion of the SBA small loan program, the reintroduction of blended terms for real estate projects, the elimination of construction bond requirements, and fee relief for loans under $2 million.
Additionally, Ray highlights a significant change in the affiliation rules that allows businesses to obtain multiple SBA loans if they are not affiliated based on ownership and sector.
In short:
1️⃣ SBA has removed minimum equity injection requirements, except for change of ownership transactions.
2️⃣ Partial change of ownership transactions are now allowed, and sellers no longer need to personally guarantee the loan if they retain less than 20% post-close.
3️⃣ SBA lenders can now use their conventional lending policies to dictate their SBA loan policies.
4️⃣ The SBA approval process has been overhauled, causing delays and dissatisfaction among lenders and borrowers.
5️⃣ The SBA has expanded the small loan program, making it easier for lenders to offer small dollar loans.
6️⃣ Borrowers can now obtain 25-year terms for multiuse projects where real estate represents at least 51% of the loan proceeds.
7️⃣ Funds control can be used instead of requiring construction bonds, reducing costs for small businesses.
8️⃣ Fee relief is offered for loans under $2 million, providing significant savings for borrowers.
CHAPTERS
0:00:00 Introduction to changes in the SBA Seven A loan program
0:02:01 Removal of minimum equity injection requirements
0:02:55 Flexibility in equity injection guidelines for business acquisitions
0:04:46 Introduction of partial change of ownership transactions
0:06:18 SBA lenders can use their own lending policies
0:07:35 Overhaul of the SBA approval process causing delays
0:08:06 Expansion of the SBA small loan program
0:09:07 Reintroduction of 25-year terms for multiuse projects
0:09:42 Ability to use funds control instead of requiring construction bonds
0:10:47 Changes in affiliation rules for multiple SBA loans
0:11:50 $5 million SBA loan for non-affiliated businesses
0:12:15 Changes in SBA approval process
0:12:15 Request for comments on changes
Spot on Ray...great video summarizing these changes.
Thank you for sharing! There was so much back and forth with all the changes that one could only get 😵 But you really simplified it all! Perfectly done!👌
Great video!!!! Thank you
Thanks, Ray.
Very informative. Will be watching again. Thanks!
Great video.
I like the call out for those managers looking to purchase businesses they've worked at for many years. The seller financing is a great option for them.
Great summary of the last few months.
Thanks for watching !
love your page
Great video
Priceless!
I still want to build a car wash. This video gives me hope. I like the lower fees and lack of a bond needed. Thanks.
Thank you for the updates for 2023!
Anything we should be aware of for 2024?
Very good synopsis that does not skip over the key details. Well done.
Awesome video as usual. I’m not a fan of them changing the preferred lender’s processes they could have made the approval process less strenuous for non preferred lenders.
This is great to know ! I'm now applying with a preferred lender for 7a for CRE for my business
Very cool. If you need any help, let me know!
Great video Ray as an SBA lender the SOP can sometimes be a different language.
Thanks for the info. Question: is there a way to waive the personal collateral requirement for a 7a loan for a startup business??
No but if the loan is fully secured with business assets, personal collateral is not needed. For example, you’re at 85% loan-to-value on commercial real estate.
ALSO: SBA 7a loans $500k and under don’t have the personal collateral requirement
Would an SBA 7a loan allow you to put less than 20% down if you wanted to purchase a building for your business? Wondering if it is possible to do 100% financing with no cash down if the business has adequate cash flow?
1000% yes
Can you please clear up the Eligibility issue on Pg 13 of the SOP.
Not sure what you mean
@@SBA_Ray
The first thing this SOP addresses is the eligibility requirements. To me, this is the most overlooked element of this SOP.
Are there any loans for a start up?
Start ups are eligible
Which loan do you recommend thru the sba if i needed a million dollars to expand my building because we are growing? We own the building.
Most likely that’s a 7a loan however could be a 504. Do you have a mortgage? Email me at ray@artofsba.com - id be happy to help!
@@SBA_Ray no mortgage
Can a 7a be used to refinance existing debt?
Yep
@@SBA_Ray do you need 20% when getting a loan to consolidate existing date?
So, enough experience mitigates risk to where no cash is acceptable
I don’t think any lender is going to do a deal where the buyer has 0 skin in the game but in the cases of a manager buying the business you can make the case that the buyer has sweat equity in the biz which is a form of skin in the game
WHAAAAAAT!?!?!?!?!? Bro, I NEED an update on that affiliation rule!!!! Is that for real!?!?
I still haven’t done one first hand but I’ve confirmed this with multiple sources including a lender that has done it first hand. So looks like it!
That is MAJOR!!!!
Hi, have a small candles manufacture in Florida and I need some some capital to be opening our first kiosk in the mall. That our plan is to turn in to a franchise store. Can you help us? Nedia
🎉🎉🎉🎉😅
Can’t believe you have more subs than me
@@SBA_Ray you gotta wrestle your wife to get these numbers. ;P
How can I get in touch with you in regards to this topic?
Go to www.sbaray.com and get in touch!