The Situation: Business Acquisition Hassle With Two Prior Banks
Two owners of a well-established truck repair and service company in Georgia wanted to retire, however, they also wanted to ensure their business continued on. Fortunately, the owners found the perfect buyer for their business to maintain its long-term profitability, longevity, and their legacy. Sadly, the owners and buyer ran into problems along the way initially trying to get the deal done.
- Unfulfilled Promises
Two financial institutions previously made promises to the sellers and buyer that they could not deliver, causing frustration and delay for all parties.
- Collateral Shortfall
Appraised value of two real estate properties did not match expectations, which complicated the collateral requirements of the loan.
- Tornado Destruction
Coupled with the COVID-19 pandemic, tornadoes devastated most of the buyer’s town, causing delays reconnecting electricity, internet, and water. The dual disasters complicated securing third-party documents, document preparation, and closing.
The Solution: A Multi-Million 7(a) SBA Loan From First Business Bank
First Business Bank, an SBA-designated Preferred Lending Partner, was able to provide a 7(a) loan totaling $3,999,000, including the acquisition of the business, equipment, and real estate of both properties.
First Business Bank followed through with its initially stated terms and even lowered the interest rate by 0.50%.
First Business Bank allowed the modifications of the seller note to make up for the collateral shortfall.
First Business Bank’s closing and credit teams communicated frequently, set expectations, and remained flexible to close on the borrower’s and sellers’ preferred date and time.