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There is no need to know every detail of the SBA program; instead, simply ask the following four questions:
If the answer to all four questions is “yes,” you have a potential SBA borrower. Finding sources of SBA ﬁnancing is easy. Finding reliable sources of SBA ﬁnancing takes a little more work. If you have ever heard a horror story about an SBA loan gone awry, chances are that the loan was made by an SBA lender who was not well-versed in the program. In this market, choosing an experienced SBA lender is the key to your success.
Will the property be at least 51 percent owner-occupied?
Does the business show suﬃcient proﬁts on its tax returns or projections to cover the mortgage payments?
Does the buyer have good credit with no bankruptcies, arrests or judgments?
Does the buyer have 10 percent in cash to use as a down payment?
The Small Business Administration Web site (www.sba.gov) has information on how to contact every SBA offce. Staff at each offce will be happy to send you a list of SBA lenders who are most active in their market. Look for lenders who fund the most loans and are part of the Preferred Lender Program (PLP). PLP lenders are those that have been given authority by the government to make credit decisions on its behalf. These lenders are likely to be most familiar with the program and to provide your client the quickest and smoothest loan closing possible.
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