Guideline for

SBA or Private loan on Business , commercial and others  

With new SBA loan Programs, It guarantee up to 90% of loan amount, if you are "Qualified".  


For new ventures: if your New venture - Product/Service can contribute to improve our Environment, Eco Solutions, or provide better systems, that your Team have solid knowledge and experiences to operating it, we like to heard from you. Not guarantee, but we might able to help.   


For existing Businesses: When purchase, Upgrade, refinance a business or Commercial, New ventures., Veteran Loan. SBA Guaranteed Lenders  and others Private Lenders are a great resource for financing. Quite often, not too many buyers have all cash for a purchase and not many business owners are willing to take back a sizeable note.

SBA and other Private Lenders look at many different issues in both the business, commercial buyer as borrower and at the business/commercial, or professional practice that is being purchased. Below are some key factors that make a difference whether you will receive SBA or Private lenders loan financing to buy or re-finance a business or a commercial.

1. Buyers /Borrowers need to have a good credit score of over 750 , the higher the score the better. Personal or business bankruptcies (within 10 years) or many late payments will usually result to dis-qualify the loan. Try your best to get any "dings" in your credit history removed or fixed well before the buying process. Early in the lending process, the lender will be running a credit check to see if you qualify and if the debt service can be serviced by the cash flow.

2. Lenders like a borrower who has experience but not absolutely required in the business they are buying or in a related industry, or with specific job skills relating to the business they are buying. Lenders also like management experience or buyers who have previously owned a business (self-employment) and know what it takes to grow and keep a business on track. You will need to provide a resume or description of your work experience. Have one ready that focuses on your industry strengths and management experience.

3. History of earnings (revenues of gross sale and profit) or  income from commercial,  both total annual revenues and adjusted net income should have a either be flat or growing over the previous three years, (no one wants to finance a business on a downward trend). If there have been any downward trends in earnings over the previous three years there should be a very good explanation or the deal will probably not be approved for financing.

4. Positive cash flow (or adjusted net income, SDC or EBITDA must cover the debt service of the loan and provide you with an adequate income to live off on; otherwise you won't get the loan. Lenders look closely at the tax returns of the business being sold - so if the seller is playing any games (not showing income, excess deductions, etc. on his business tax returns) chances are you won't get a loan. Ask for the business tax returns early in the process of looking at a business and see if you can "add back" sufficient net income, depreciation, interest, and owners salary (adjusted net income) to pay back the loan. Also, cash flow analysis by lenders is very different than by business brokers, agents, or business owners.

5. Additional equity in any real estate that can be attached to the loan? Although not imperative with many of the lenders we represent, this can strengthen the deal if the other parts of your loan application are weak such as the down payment, work experience or a lower credit score.

6. Management team remains: Will the business that's being sold have management in place and it key employees who are going to stay? Try to get commitments from existing key personnel and management to stay for a period - this shows the lender continuity and less risk after you take over.

7. Will the seller take back a note? If the owner is willing to take back a note, even a small note as 15%-25%, this shows the lender that the owner is confident in the deal and is willing to take a chance on the buyer, and in most of the sales, Sellers are maintain his/her roll in the business ( after closed of escrow) during operation to secures the smooth transaction…. 

Quinchee Loeng is a Licensed Broker/Banker  on SBA  and Private loan financing, she and her Associates assists Business Buyers, Business Owners Nationwide to obtain SBA , and Private Financing on Selected Types of  Mid-Size Businesses or Commercial . Working with Network of Lenders, combined with her over 25 years industry experience, she and her Associates offers their Clients the right loan packages, and most deals complete within 45 days ( within U.S.).Please contact us if you have question.

U.S.Business Bankers

( Division of LOF )

2540  Huntington Dr, suite #109

San Marino, CA 91108 .U.S.A.

01-626-285-5653 ( B )

01-626-285-5612 ( Fax )

01-626-371-3297 ( direct )

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We provide these services: Business Funding, Business Joint Venture,

Business Appraisals, Credit Card Funding.