Buying Online Businesses Podcast Nuances In Buying A Business With SBA with Yankie Markowitz
Understanding the fine print that could make or break your deal is just as important when purchasing a business with SBA financing as it is when obtaining a loan. All too frequently, buyers lose out on opportunities or become mired in transactions that don't fit the program because they are unaware of the nuances of SBA regulations.
The CEO of SBA Loan Group, Yankie Markowitz, sits down with Jaryd Krause in this episode to discuss his extensive knowledge of SBA loans and how he has facilitated more than $1 billion in SBA and real estate transactions. Yankie explains which business categories are eligible for SBA financing, what has changed recently, and how to handle the complex world of debt ratios, deal structures, and cash requirements.
You’ll learn:
✔️ Which businesses can—and can’t—be acquired with SBA loans
✔️ How much cash do you need to qualify
✔️ Why e-commerce fits well with SBA financing, and where it falls short
✔️ The ins and outs of seller notes, holdbacks, and loan terms
✔️ Real-world lessons from deals that worked—and ones that didn’t
This episode provides useful, straightforward advice from one of the most seasoned SBA specialists in the industry, regardless of whether you're prepared to purchase your first company or want to improve your acquisition approach.
🎧 To learn how to make SBA financing work for you and get closer to financial independence, listen now.
Episode Highlights
06:15 – Eligibility requirements and the role of creditworthiness in SBA loan approval
10:30 – Structuring deposits and how larger down payments can secure better interest rates
15:45 – Differences in loan terms and amortization for business vs. real estate purchases
20:20 – Prepayment penalties and their impact on SBA loan flexibility
23:00 – Utilizing seller notes and financing strategies in SBA deals
29:50 – Debt service coverage ratios and the importance of consistent cash flow
Key Takeaways
➥ SBA financing is highly versatile, supporting working capital, inventory, real estate, and refinancing, but buyers must understand eligibility and lender-specific nuances.
➥ Seller financing (seller notes) can be incorporated into SBA deals but requires careful structuring to meet lender requirements and ensure adequate cash flow.
➥ Business valuation multiples generally range from 3-5x EBITDA for traditional businesses; higher multiples (like software businesses) often require substantially more equity upfront.
➥ Owning an existing profitable business simplifies acquiring complementary businesses by leveraging combined cash flow to support additional debt.
➥ Sustainable growth beats rapid expansion; business owners must carefully manage operational costs and cash flow to avoid overextension post-acquisition.
About Yankie Markowitz
Yankie Markowitz is the Chief Executive Officer of SBA Loan Group. Yankie has helped facilitate over $1 billion dollars in SBA and real estate transactions, and complex deal syndication. He is often sought out by bankers to help structure intricate SBA transactions because of his knowledge and unique experience with the U.S. Small Business Administration loan programs.
Yankie is an Executive Board member for the Regional Business Assistance Corporation (an SBA CDC) and has been on the Loan Committee which allows him to work on hundreds of transactions for SBA each year.
He also serves as a Board Member of Crown Heights Young Entrepreneur, a non-profit that is a full-service business resource center specifically tailored to fit the unique needs for aspiring entrepreneurs that focus on promoting responsible business development and providing them with the tools and resources that they need in order to achieve lifelong financial independence.
Connect with Yankie Markowitz
➥https://finwise.podbean.com/e/finwise-eye-on-sba-lending-yankie-markowitz-ceo-sba-loan-group/
Resource Links
➥ Connect with Jaryd here - https://www.linkedin.com/in/jarydkrause
➥ Buying Online Businesses Website - https://buyingonlinebusinesses.com
➥ Sell your business to us here - https://buyingonlinebusinesses.com/sell-your-business/
➥ Download the Due Diligence Framework - https://buyingonlinebusinesses.com/freeresources/
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