M&A Talk: #1 Podcast on Selling a Business Major Changes to SBA Loans (July 2025)
Jul 22, 2025
In this enlightening conversation, Steve Mariani, President of Diamond Financial Services and SBA loan expert, dives into pivotal changes in SBA loan procedures slated for July 2025. He highlights the effects of new equity injection rules and the implications for vehicle liens that can reshape how businesses navigate acquisitions. The discussion also covers the latest requirements for franchisors and the complexities involved in ownership transitions, especially regarding foreign ownership regulations. Tune in for valuable insights on maximizing opportunities in SBA financing!
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Manufacturing SBA Loan Cap Increase
- SBA loan cap for manufacturing businesses will increase from $5 million to $10 million soon.
- This aims to help bring manufacturing back to the US and adjust for inflation since 2010.
New Equity Injection Rules
- The seller can now only hold half of the required down payment, max 5% for a 10% injection.
- This seller-held portion must be on full standby for the life of the loan, often 10 years, with no interest paid during that time.
Buyer Qualifications for SBA Loans
- Buyers generally need one year of direct industry experience or three years related within five years.
- They must also have good credit and meet minimum equity injection of at least 5% to qualify for SBA loans.