Small Businesses and SBA Loans with Stephen Speer
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Small business is the backbone of the United States. Without ambitious entrepreneurs starting small businesses, the economy would take a huge hit.

At some point, for many business owners, there comes a time when someone offers to buy the business.

But, where do these people find the funding to buy a business?

**On today’s episode, **Jason and Ron from Websiteclosers.com, talk with expert Stephen Speer – the founder of eCommerce Lending Inc. – about SBA loans, how buyers acquire them, and what myths and misconceptions there are around SBA loans.

**[01:15] **What is an SBA loan?

• SBA – Small Business Administration – is a department within the Federal Government;
• The Federal Government, through SBA, offers 75% of the loan, to banks that lend money to small businesses;
• There are several types of SBA loans, but the only one available for business acquisitions is called, “The 7(a) Loan”, which comes with a specific set of rules;
• It could be one business or 50 businesses – you’re allowed up to $5 million balance of SBA loans.

**[02:50] **The advantages of the SBA process:

• For a seller, the SBA process is really important because they can get 85-90% of the entire deal in cash at closing;
• The buyer gets an entire decade to pay back a loan, through the cash flow of a business;
• The interest rates for SBA loans are reasonable and much lower than what you might see if you’re trying to get a commercial or a personal loan;
• There’s a lot larger buyer pool that can afford to get into an SBA loan because the down payment is so low.

**[05:37] **Who are SBA loans built for?

• They’re built for small business owners and in the business acquisition world, they’re built for buyers of businesses;
• Loans up to $5 million pretty much cover any need for any small business owner –for example, real estate loans, business acquisition loans, equipment loans, etc.

**[06:22] **What sets eCommerce Lending apart from other sources?

• They’re not a bank, meaning they’re not lending their own money;
• They are facilitating transactions with their lending partners;
• They put together the structure of the deal and work from start to finish with their buyers;
• Their value is their expertise and the fact that they are very flexible. For example, if a lending partner doesn’t like a deal, they’re able to switch gears without restarting the process, and offer it to another one of their lending partners very quickly;
• They collect every bit of documentation required and ask as many questions as possible before the loan goes into underwriting;
• If there are weaknesses in the deal, they address them up front, because the underwriter is going to ask the same questions.

**[09:25] **A piece of advice from Stephen to anyone interested in buying a business with an SBA loan:

• It’s imperative for any buyer out there, to get pre-qualified before beginning their search. At eCommerce Lending, they offer their time, free of charge, to speak with buyers.

Resources:

• websiteclosers.com)
• eCommerce Lending Inc.)

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