Blue Collar Prosperity 038: How to Leverage the SBA to Grow or Sell Your Company with Dillon Caraway
Feb 10, 2025
Dillon Caraway, a Loan Officer with Live Oak Bank, specializes in helping contractors thrive through SBA financing. In this discussion, he reveals why Live Oak Bank outshines local banks and its rise as the largest SBA lender in the U.S. Listeners learn how to utilize SBA funds for growth and acquisitions, along with the best timing for engaging banks. Dillon also shares insights on eligibility criteria and strategic financial health, empowering blue-collar owners to confidently navigate their business journeys.
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Live Oak's Industry Focus Pays Off
- Live Oak Bank leads SBA lending by focusing on specific industries instead of regions.
- They use an industry-focused model, concentrating on sectors like HVAC, plumbing, and electrical trades.
Use SBA Loans to Grow or Acquire
- Use SBA loans both for organic growth and to acquire businesses in the same industry with up to 100% financing.
- Also consider SBA loans for commercial real estate purchase and debt refinancing to free cash flow.
SBA Loan Basics for Buyers
- First-time business buyers must provide 10% equity injection on SBA loans.
- SBA updated rules make loans under $500K easier and loans as small as $10,000 accessible.