SBA Loans and how they make business acquisitions easy

Every week I interview someone from the world of mergers and acquisitions so we can find out their approach to buying businesses.  

These days we have an international audience with many, many listeners in the United States. Now in the United States, they have an incredibly useful way of buying a business called an SBA loan.

This week I talk with Ray Drew, my resident expert on SBA loans, about how they work and how you can effectively buy a business without using any of your own money. 

Key Highlights

[01:18] Ray discusses his background
[01:54] What SBA loans are used for
[02:52] How they work
[04:26] The application process
[05:02] Why sector experience isn't essential for a loan
[07:15] Options for raising a deposit
[10:36] The role of the seller and the benefits for them
[13:30] Loan terms and conditions
[17:40] Negotiating working capital for the acquired business
[21:24] Eligibility for borrowing
[25:52] How to get in touch with Ray

Notable Quotes

The business plan is just the tip of the iceberg. It's what you would call a full doc program, but the business plan doesn't have to be too crazy because it's for an existing business. 

We look for relevant experience. Most of all, we look for management experience. Experience managing people, managing a budget, managing a Profit and Loss, things like that are going to transfer over to just about any business.

So a credible buyer for that type of business really has the potential to buy or pay up to 5 million for a business.

Resources

Buying a business is only the start, which is why we are now teaching what happens next on the Mastermind program. Now, if you've already bought a business, you should be part of my Inner Circle group where we discuss raising capital, integration management, and exiting. Email Maria on hello@thedealmakersacademy.com for more information. 

If you are looking for a lawyer in the UK to help you get the deal over the line, then use my own lawyer, John Andrews. You can phone his office at (0345) 2412494 or email him at johnandrews.deallawyer@jmw.co.uk.

If you would like to take the next step to learn the best ways of buying a business, without risking your own cash, you can access my free training at:
www.dealmakerspodcast.co.uk

Watch my Webinar Training Video:
https://www.dealmakerspodcast.co.uk

You can also request a free copy of my book at:
https://www.thedealmakersacademy.com/free-book-giveaway/

If you want to jump straight to my live Zoom FastTrack course, please go to:
https://www.thedealmakersacademy.com/fast 

Connect with Jonathan Jay at:
Website: https://www.thedealmakersacademy.com/
LinkedIn: https://www.linkedin.com/in/jonathan-jay-3556b230/
YouTube: https://www.youtube.com/c/TheDealmakersAcademy