SBA Loan Secrets with Heather Endresen - Acquisitions Anonymous e75

If you liked this episode, subscribe to our weekly newsletter and receive new episodes, offers and learnings directly to your inbox every week:https://landing-newsletter.acquanon.com/----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 [email protected]. 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 GroupSubscribe to  weekly our Newsletter and get curated deals in your inboxAdvertise with us by clicking hereDo you love Acquanon and want to see our smiling faces? Subscribe to our Youtube channel.Do you enjoy our content? Rate our show!Follow us on Twitter @acquanon Learnings about small business acquisitions and operations.For inquiries or suggestions, email us at [email protected]