SBA 7a Loan to Buy a Business

[@LeoLandaverde]

Click on the link below to download my CASH FLOW CALCULATOR for BUSINESS PURCHASE worksheet: leo97eda0.clickfunnels.com/optin1704493342844 Click on link below to download a copy of my BUYER DUE DILIGENCE CHECKLIST:leo97eda0.clickfunnels.com/checklist

[@AlejandroReyes-nv6xo]

Great video!! Me and my partner are in the middle of buying a $1.2 million laundromat and the seller is offering $400k seller financing we are about $75k liquid but we are concern on getting the rest on sba loan. Your thoughts?

[@LeoLandaverde]

Alejandro, Yes! Let’s connect and address your concerns. Please email me your contact information to [e-mail] and let’s schedule a time to chat.

[@LeoLandaverde]

Hey guys! Thanks for watching and I hope my video was helpful. Please comment below and ask me any questions. Make sure to join my Facebook group: facebook.com/groups/leolandaverde/

[@maximgriman2192]

Leo, thanks for a great video, again, a lot of new information! A few follow-up questions: 1) You mentioned that a down payment might not be required if there's reasonable collateral - Can you please define reasonable? Are there any specific requirements? Does it differ between asset/service-based businesses? 2) One of your deals is a $6.8M assisted living, is it possible to receive more than $5M with the SBA 7(a)? 3) Are there any specific experience requirements like # of years in the industry, or is it up to the lender to decide? Side note, I'd love to see a video about PGs and the SBA's requirements!

[@LeoLandaverde]

Hi Maxim, great questions! Here are the answers: 1) Correct. A down payment is not always required. It could be either asset or service-based. It really comes down to the strength of the business, the length of time in business and, most importantly, the strength of cash flow in the business. If the debt service coverage ratio is over 1.5, SBA lender may decide to not require a down payment from borrower but rather use business assets as collateral, I.e. A/R, or equipment. 2) The maximum SBA 7A loan is $5 million. This deal did require a down payment, plus there was some seller financing as well. 3) There’s not a number of years of experience set in stone but the more years in the industry the better. The SBA will look at the combined experience of the management team. Thanks for the suggestion about PG’s. I may do a video like that in the near future.

[@reddeadoutlaww]

Perfect content as always!

[@LeoLandaverde]

Much appreciated!

[@clarencethomasisthegoat]

One thing I'll add is contact as many lenders as you can, 10+ at a minimum. They all have VASTLY different underwriting requirements.

[@LeoLandaverde]

Good point. I agree with you.

[@sandragarcia8994]

Hey Leo, I didn’t know half of this information about SBA loans. Thanks for sharing your knowledge. Great video.

[@LeoLandaverde]

Thank you Sandra! There’s a lot to learn about the SBA.

[@ryankeenan351]

Great video! What if I have no experience but great credit and enough money for a down payment can I still get around the expierence requirement ? Interested in laundromat, car wash or liquor store. Thanks!

[@LeoLandaverde]

Hi Ryan, without experience it will be nearly impossible for you to get a loan to buy a business with the SBA

[@ryankeenan351]

@@LeoLandaverde Thanks for the response, I do own some rental properties of which some are in a LLC. Would that give me some buisness credit?

[@DubbPP]

Grants?

[@ddavis8988]

Can a sba 7a loan be used to buy a part of a business? For example, could I buy 60% of the business and the previous owner stays on at 40%?

[@LeoLandaverde]

Good question. The answers is NO. SBA loans can only be utilized for 100% either asset sale or stock sale. No partial change of ownership is allowed.

[@paulcasarez2545]

I'm interested in purchasing an existing 36 year old global agricultural water & Septic tank distribution company for 1.5m 4m net rev, 500k cash flow.

[@LeoLandaverde]

That sounds like a good deal. Email me your contact information to [e-mail] and let's set up a time to chat.

[@yordanilluveres4085]

Hello Leo, I am looking to purchase a manufacturing company in the caribbean what kind of SBA loan do you think will let me do that.

[@LeoLandaverde]

SBA loans are only for US based companies. You will have to find an alternative source of financing. How much money do you have to put down?

[@MyRatingsMakesSense]

What about sellers that want your financials first before sharing any of that. Sellers don't want to disclose the necessary documents because they are asking that you provide proof that you can afford their business?!?

[@LeoLandaverde]

You should not have to submit your financials in order to show you're qualified buyer. You present a letter of intent (LOI) and if accepted you get into due diligence which allows you to review and verify financials from seller

[@MyRatingsMakesSense]

@@LeoLandaverde Thank you for the clarification.

[@LeoLandaverde]

Absolutely! by the way, how much is the business selling for?

[@michellepineda5468]

Would they loan for a laundromat business?

[@LeoLandaverde]

Hi Michelle, yes! let's connect if you're thinking about buying a business. Email me your contact information and let's chat.

[@chadberles2056]

I'm looking to start a roaring 1920s style restaurant bar night club !!!

[@LeoLandaverde]

Chad, awesome! Good luck to you!

[@michelledarby849]

I am interested in buying an assisted living facility. Can I use an SBA loan to buy the real estate portion of the business?

[@LeoLandaverde]

Hi Michelle, that's awesome! Yes, you can so long as price and ratios all make sense. But you can't buy the real estate without buying the business because of the owner occupancy issues. Are you buying the business as well?

[@homarmedina1391]

700+ credit and want to use heloc money for down on a 2.5 million roofing company

[@LeoLandaverde]

You can absolutely do that. If you want to connect with me and schedule a call, please email me at [e-mail]

[@unlockyourstarz]

Hi, I am stuck trying to figure out how to buy my dream business. I have a credit score in the acceptable range. I have never owned a business.

[@LeoLandaverde]

Glad to hear. I can totally help. How much money do you have saved for a down payment?

[@ravennamoonrise]

@@LeoLandaverde what is your emaol?

[@LeoLandaverde]

[e-mail]

[@albertopadilla3227]

Hey Leo, do you know about buying a swimming pool route? I have perfect credit score and have money to put down. Could you help me with this? Thank you so much! Love your channel

[@LeoLandaverde]

Hey Albert, do you have experience with pool routes? You already on one?

[@albertopadilla3227]

@@LeoLandaverde I’m working for a pool company as a 1099 employee for 2 weeks but did pools on my days of last year while working as a Chef. I should mention that I have money to put down about 30,000 and Need to borrow 60,000. Thank you for getting back to me, God bless

[@felicia1ofakind]

Great video, I'm looking to purchase a few FedEx routes does that count?

[@LeoLandaverde]

Hi Felicia, yes, what city and state?

[@felicia1ofakind]

@@LeoLandaverde Brooklyn, NY but I can purchase anywhere within the NY area for a fedex route. I can purchase in other states as well up to 6 hours away from NY

[@LeoLandaverde]

Hi Felicia, Please let me know if and when you find the ideal FedEx route for you.

[@abrahamzekios2666]

Thanks good job.

[@LeoLandaverde]

Thank you very much!

[@oe1299]

Hotel

[@marinfg]

Leo what is a good way to reach you? There is a business I want to buy.

[@LeoLandaverde]

Hi Manuel, we are all set for 3pm. Looking forward to chatting with you in 40 min.

[@marinfg]

@@LeoLandaverde thank you so much for your call and your input. Looking forward to chatting with you more.

[@andyc_0429]

Great value! I would love to get in touch to discuss the necessary steps to move forward with buying a business. Thanks for the video!

[@LeoLandaverde]

Hey Andrew, absolutely! I’d love to. I’m on vacation till January 6th. Please email your contact information including your ph# to [e-mail] and we’ll schedule a quick meeting when I am back in my office.

[@michaelbirger2008]

As a US citizen can I buy a 100% of US company owned by foreign citizens who don't have a green card or US citizenship?

[@LeoLandaverde]

Hey Michael, yes you can, so long as the business is based 100% in the US

[@ndominix3796]

Hello Leo, interested on buying a establish kiosk of coffee and cafe for $100,000 located to a hospital..the kiosk itself is located next to the main entrance..first time business owner here if we move forward..would like to get in touch with you for some guidance..

[@LeoLandaverde]

Good morning. Please email me your contact information to [e-mail] and let’s set up a time to chat.

[@BoogieTX]

We are stuck and don’t know what to do next. Found the business and got the info but don’t know where to go. They want 99,000

[@LeoLandaverde]

Unfortunately, it is very difficult to get an SBA loan approved that is less than $350,000. Have you considered a higher priced business?

[@lindadelossantos7893]

I’m looking at a RV and Boat storage business for sale at $5.5mil. What is cap for 7a loan?

[@LeoLandaverde]

Hi Linda, Most SBA loans go up to $5 billion but there are exceptions. I would love to connect with you. I’d like to help you get the loan for the purchase. Please email me your contact to [e-mail]

[@abdelhakzerrouk7807]

Hey brother how’s it going? I’d love to know more and talk. Thanks for the info

[@LeoLandaverde]

Absolutely. Please email me your contact info to [e-mail]. I’ll do my best to call you within 24 hours

[@jacobhermosillo1891]

leo, my father and i are looking to purchase a small machine shop leveraging both a 7a loan mixed with some owner financing. together we have a 10% down for the sba. we have a combined 65 years of experience in machining, managing and operating different machine shops over the years. id love any advice or guidance you have to offer. asking price $310k cash flow $140k FF&E 141k gross sales $228k jake

[@LeoLandaverde]

Hi Jacob, cash flow seems good. However, the devil is in the details. Does this business have tax returns? I would start there. Double check tax returns back up the income claims.

[@jacobhermosillo1891]

@@LeoLandaverde thank you leo! i will be dragging my existing CPA with me to sign NDA and take a look over everything. hope all is well, jake

[@mr2blueyes]

CPA firm

[@LeoLandaverde]

Hey Christopher, are you looking to buy a CPA from?

[@josem7396]

I'm looking to start a business doing concrete curbing and want to get a loan with sba to buy the equipment is that possible

[@LeoLandaverde]

Hi Jose, it is possible to get a start up loan in your industry. However, it is much harder than getting a loan to buy an existing busines because it is the cash flow that pays for the loan. We can chat 1-on-1 if you wish. Email me your contact info at [e-mail]

[@surge1939]

Hi Leo, Not sure what's the best way to reach out to you? Maybe you can point me to some good lenders and you could possibly be my broker for purchasing an existing business

[@LeoLandaverde]

You can email me at [e-mail]. I’m pretty backed up with clients I’ll do my best to get back to you soon

[@surge1939]

@@LeoLandaverde thank you for the info. Look forward to hearing from you. If your backed up we schedule for something in a month or so?

[@nseasuama1234]

I want to buy hotel and I have 740 credit score

[@LeoLandaverde]

Excellent… email me your contact information to [e-mail] and let’s connect

[@LabatWoodshop]

Excellent video from start to finish

[@LeoLandaverde]

Peter, thank you very much so glad it was helpful to you

[@surge1939]

Hi Leo, I'm looking into getting an SBA loan and would like your help. Please reach out to me when possible. Hopefully we could chat more. I really appreciate your great videos and information that you give.

[@daniloghiotto8685]

Great content, learning a lot. Thanks!

[@LeoLandaverde]

Thanks Danilo. Are you looking for a business to buy?

[@tinaharbor8506]

What about personal financial statements, because if your income is low, you won’t qualify anyway ?

[@LeoLandaverde]

The personal financial statement it’s a key piece of the puzzle. In fact, I just released a video today talking about the personal financial statement. The SBA will be trying to assess your net worth. Are you in the process of applying for an SBA 7A loan right now?

[@tinaharbor8506]

@@LeoLandaverde yes and I don’t have enough personal income, but my credit is excellent

[@LeoLandaverde]

The business income will be the one for the loan. Net income will satisfy the debt service coverage. What kind of businesses are you looking at?

[@tinaharbor8506]

Storage units @3.5 million

[@LeoLandaverde]

In that case, you will need at least $350k down payment, which could come from a 401k or savings. If you want more guidance, feel free to email me directly at [e-mail]

[@colombvj124]

Hello, I’m a veteran looking to take the opportunity to use a veteran program sba 7 loan to buy a business. I actually have 4-5 that I like and are profitable and looking to pursue. Thanks for the video. Seems to check the boxes I learned from you video.

[@LeoLandaverde]

Hi Vinny, nice to meet you! Would love to chat with you. Email me your contact info and availability at [e-mail] and let’s set up a time to chat via Zoom.

[@MrHannible]

How can I contact you about getting help with an sba loan.

[@LeoLandaverde]

Hi you can email me directly at [e-mail].

[@kacyliastevenson5832]

I have questions ,how can we contact you?

[@LeoLandaverde]

Absolutely! Please email me your contact info at [e-mail]. Looking forward to it.