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Daily Archives: August 24, 2023

New SBA Lending Rules in Effect August 1,2023

Steve Mariani of Diamond Financial Group outlined the following SBA changes in his recent newsletter to intermediaries. You can check out this newsletter at https://diamondfs.com/wp-content/uploads/2023/06/June-Newsletter.pdf

Some of the most positive changes are:

*Sellers can now provide 24 months of seller financing on stand-by instead of the previous stand-by for the entire loan’s life. This stand-by can also be included as a down payment.

*Seller notes can now supply 100% of the down payment vs. 50% previously.

*The seller can now stay on as a “key employee”. This is particularly helpful when a buyer needs a specialty license to operate the business and the seller can provide that service.

*A big change is the removal of the buyer’s personal liquidity rule. This gives more flexibility to high net worth business buyers.