Ray Drew, also known as "SBA Ray," is a seasoned SBA 7A lender with 13 years of experience who helps entrepreneurs navigate business acquisitions. He shares insider tips on the dos and don’ts of SBA lending and discusses effective loan structuring strategies. Listeners will learn about recent guideline changes, potential pitfalls, and the importance of debt service coverage. Ray also dives into how lenders make money and the evolving landscape of SBA loans amidst rising borrowing costs, making this a must-listen for aspiring business buyers.
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volunteer_activism ADVICE
SBA 7A Loan Benefits
Use SBA 7A loans for buying businesses, working capital, and closing costs combined.
Lower equity requirements and longer repayment terms give SBA loans a distinct benefit.
insights INSIGHT
SBA Modernization Drivers
SBA is modernizing its program to adapt to the 'silver tsunami' of retiring business owners.
Faster SBA capital delivery aims to reduce reliance on expensive alternative lenders.
volunteer_activism ADVICE
Working Capital Needs Matter
Do not rely on working capital that just reimburses your down payment.
Calculate working capital based on business cash cycle to ensure success year one.
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In this episode of the M&A Launchpad Podcast, hosts Casey Minshew and Feras Moussa interview Ray Drew, known to many in the M&A space as “SBA Ray”. Ray hosts his own podcast called “The Art of SBA Lending” and provides an in-depth exploration of the SBA lending program, particularly the 7(a) loan. He has 13 years of experience in the lending space and is currently with Truliant Federal Credit Union as an official SBA 7(a) lender. Key topics discussed include the dos and don'ts of SBA lending, loan structuring for business acquisitions, and recent changes to SBA guidelines.
Ray offers valuable takeaways for business buyers and how lenders make money. From a lender perspective, we discuss how money can be made as an SBA lender. More importantly, from a buyer’s perspective, we dive deep into all aspects of the SBA product line, from the benefits to an SBA loan, to the recent guideline changes that buyers should be aware of. The episode concludes with a deep dive into the nuances of SBA loans, including debt service coverage ratio, collateral requirements, and typical borrower mistakes.
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