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My guess is that the truck was probably worth close to what the loan was to be for.
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I suppose that depends on what your definition of "close" is. The initial app was for $200,000 and their counter was for $175,000, which was significantly more than the truck cost. I was initially told, like GMAN said, they don't get involved with trucks. I'm just saying that's not necessarily the case.
He's got quite a bit of collateral in the deal. I agree that they're going to expect him to accept quite a bit of risk. But I assume he's not going in expecting to finance everything. SBA likes to see a decent down-payment in most cases. Don't shrug off the business plan. The more detailed and precise you can be, especially if you can back it up with the previous owner's numbers, the more attractive the deal looks.
Having said all this, if the deal is worth doing, you're better off going to a bank. The SBA is set up to be a lender of last resort. That means they're not there to give you a good deal, just to give you an avenue if you have nowhere else to go.