Common Questions
[01]
Why only 15% to 19% equity?
This range keeps you firmly in control as the majority owner. Crucially, it stays under the 20% threshold at which the SBA requires an owner to personally guarantee the loan, meaning the guarantee and operating decisions stay with you.
[02]
Will you guarantee my SBA loan?
No. As a minority owner under the 20% mark, I am not a required guarantor. You will maintain full control and responsibility for the loan as the majority owner and primary operator of the business.
[03]
Can your investment count toward my down payment?
SBA regulations have specific guidelines regarding the source of equity injections. We work through these details with your lender early in the process, as every deal and lender requires a tailored approach.
[04]
Do you make decisions for the business?
No. You run the company day-to-day. I provide strategic guidance, review financials monthly, and act as a sounding board, but all final operating decisions remain entirely with you.
[05]
What if you decide not to invest in my deal?
I will provide an honest, objective opinion on why I believe the partnership isn't a fit. You are then free to move forward with the acquisition on your own, equipped with a thorough outside analysis.