Originally published in Entrepreneur

By Mark Abell

The U.S. Small Business Administration has fixed a rule that was threatening to make it extremely difficult to finance partnership buyout transactions using SBA-backed loans.

At the start of 2018, the SBA adopted the rule, Standard Operating Procedures 50 10 5(J), that stated that in order to qualify for a loan to buy out a partner’s interest in the business, the balance sheet must have a minimum equity position after the sale equal to at least 10 percent of the firm’s total assets.

It’s worth understanding the fix given that the old rule created confusion in the marketplace. And partnership buyouts are already complicated and difficult enough.

Read the full article at https://www.entrepreneur.com/article/318000

Mark Abell is Senior Vice President and SBA Division Director at NBH Bank.