Question:

How do I get my business SBA approved? It seems like doing so would help to move the sale of my business faster. Thank you.

Answer:

This is a great question and you should be commended for being proactive about the financing portion of selling your business.

The process is actually quite simple: if you engage a business broker, this is something they can do on your behalf.

If you are selling the business on your own, then you should contact a local Preferred SBA lender. They will provide you with a list of documents required to complete the pre-qualification process. These will generally include:

• The most recent three year?s of company tax returns
• Accompanying P & L statements and Balance Sheets
• Your W2
• Recent interim statements
• Asset list

From this they will determine if, under the right deal terms, the buyer will qualify for the SBA program.

Plus, there will be some additional conditions relative to the buyer qualifications. They will be able to determine how much they are prepared to lend, what amount the buyer will need as a down payment, what amount (if any) they may ask you, the seller, to finance, and the fees involved to complete a transaction.

Keep in mind that this step is only a pre-qualification and, like all lenders, they will have plenty of disclaimers.

However, once you obtain a pre-qualification status, it will provide you with a huge advantage when advertising your business. Make certain that you do not make any claims to prospects about the financing. This is only an initial pre-qualification.

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