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Breaking news: Changes to SBA guidelines. Read More.
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As I understand it, the SBA is now not granting loans to buy a licenced services business (HVAC, electrical etc) unless the buyer has a licence.
No more buying the business first and working it out later.
This is apparently applicable from Aug 1st.
Just a question for US buyers: How will this affect you?
This actually went into effect and the June 1 update, but it’s not as big of a change as some people make it seem. This is the way it has operated for a lot of years.
In 2023 new rules that came out then allowed for a seller to retain some ownership which allow the buyer to use their license.
The new rules actually still allow a seller to stay on board, they just have to agree to a two year guarantee.
Without that, depending on the state requirements, the buyer can bring a partner on board that has the correct licensing.
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