Action Academy | Replace The Job You Hate With A Life You Love 🚨 The NEW Changes To Small Business Lending (SBA Update - Emergency Pod!)
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Apr 28, 2025 Discover the latest shifts in SBA lending, as new policies are set to tighten qualifications amid mounting defaults. Learn about the crucial changes, including higher down payment requirements and the push for personal guarantees. Dive into 'phantom equity'—a fresh financing approach that's shaking things up. Whether you're eyeing commercial real estate or small business investments, this conversation equips you with insight to navigate the evolving landscape and potentially quit your job in the next 6-18 months!
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SBA Underwriting Standards Relaxed and Reversed
- The SBA 7A loan program underwriting standards were severely relaxed during Biden's administration, leading to increased defaults.
- This situation forced the SBA to tighten lending criteria again to preserve the program's viability.
Bring 10% Cash To Closing
- Bring at least 10% cash to the closing table when applying for an SBA 7A loan.
- You cannot use a seller note to reduce this cash down payment requirement anymore.
Seller Partial Ownership Guarantees
- Sellers retaining partial ownership must personally guarantee the SBA loan for two years.
- This change will significantly impact earnouts and minority ownership negotiations.