Reply To: Down Payment

[Joe Jereb]

Not from experience, but just repeating what I’ve read/heard–I understand that SBA will not back loans that have any other debt, even if it is subordinate to the SBA loan. One way around this seems to be full-standby loans from the seller, where they do not receive any principle or interest payments until the SBA loan is fully paid off. This sounds like a seller providing what is potentially a discount on the selling price, so might be a big ask.