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.-----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-----Thanks to our sponsors!MoreNow.co: We help owners build a high functioning, experienced team by leveraging the top manager/director talent in the Phillippines. Go to morenow.co and fill out the form. Or email hire@morenow.co. Mention this pod for 20% of your first hire.-----Additional episodes you might enjoy:#62 Two Landscaping Businesses for Sale - Mike Loftus CEO of Connor's Landscaping#66 Analyzing Software Businesses for Sale with Steve Divitkos, experienced industry CEO#64 How to find the expected benchmarks and KPIs for your industry?#48 Two Landscaping Businesses for Sale - Mike Botkin of Benchmark Group#45 $800k/yr cleaning business in Midland, TX / a $565k/yr window cleaning business in San Antonio, TX--- Support this podcast: