Let's Talk

THE SITUATION: MANUFACTURING COMPANY PRESIDENT PURCHASES THE BUSINESS

Recently a Wisconsin manufacturing company hired a President to secede the owner. A year later, the owner unexpectedly passed away and, after the estate settlement, the President sought to buy the company. However, loan eligibility difficulties caused First Business Bank’s SBA team to re-structure the loan multiple times while the client persevered and adjusted to get loan approval from the SBA.

DEAL COMPLICATIONS

Amid the flood of Paycheck Protection Program requests and interpretations of SBA eligibility, First Business Bank’s SBA team kept encountering roadblocks and delays but kept working to problem-solve and get a deal structured appropriately for our client.

INCONSISTENT HISTORICAL FINANCIAL PERFORMANCE

The previous owner’s death caused some historical performance issues, however, the business was trending upward under the current President. His vision and operation plan was clearly articulated and the positive financial performance demonstrated the strength of his management ability.

THE SOLUTION: 7(A) SBA LOAN FROM FIRST BUSINESS BANK

First Business Bank, an SBA-designated Preferred Lending Partner, provided a 7(a) loan totaling $1.2 million, which included purchasing the business and real estate. The Rollover for Business Startup (ROBS) allowed our borrower to access his retirement accounts penalty-free, which was used for the down payment on the transaction.

RELIABILITY

First Business Bank’s closing team worked closely with the client and SBA to achieve a rewarding end result and avoided a financing fall-through.

EXPERTISE

First Business Bank’s expertise in SBA lending allowed us to communicate effectively with the SBA and establish an eligible loan structure that all parties could agree to.

FUNCTIONALITY

Together, the SBA 7(a) program and the ROBS program were the right choice for our client to buy the business and real estate. Accessing his retirement accounts penalty-free preserved his post-closing liquidity.

"The client always appreciated what we were doing to help and THEY TRUSTED US AND HAD FAITH “IN WHAT WE WERE DOING throughout the entire process.

— Ryan Black, SBA Business Development Officer, First Business Bank

WANT TO LEARN MORE?

Let’s talk. Contact your First Business Bank representative today or visit firstbusiness.com/sba.

NOTICE

Consumer Bill Payment clients may see a one-time pop up message when accessing the Bill Payment section of Online Banking informing you about heightened Virtual Card payment security.

Read More ›

NOTICE

Access to our Remote Deposit Capture system is intermittently unavailable; users may not be able to access it at this time. We are working to restore access as possible. If you have questions, please contact us at:

  1. Wisconsin Region: 608-232-5938
  2. Kansas Region: 913-717-6464