AmiSight 12/15: Sometimes Business Partners Grow Apart
Hard Truth: Sometimes, business partners grow apart. People's interests and needs change over time. And often, these conversations become complicated and contentious.
Are you in a situation like this? One option to consider is an SBA 7a loan to buy your partner out.
As one example, let’s say you own 60% of your business, and you have a partner who would like to leave who owns 40%. To figure out what the company is worth, you must order an appraisal from an SBA-approved appraiser. If this business is worth $1M, the bank would likely lend you $400K to buy out your partner's share. The loan terms would be ten years, giving you time to pay it down. There would be no down payment.
Want to learn more about how to use an SBA loan to buy out a partner? Visit our on-demand learning platform at www.sbaignite.com to learn more.