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<p class="MsoNormal">Greatly appreciated<o:p></o:p></p>
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<p class="MsoNormal"><b>From:</b> wsbapt-bounces@lists.wsbarppt.com <wsbapt-bounces@lists.wsbarppt.com>
<b>On Behalf Of </b>Joshua McKarcher<br>
<b>Sent:</b> Thursday, March 4, 2021 9:20 AM<br>
<b>To:</b> WSBA Probate & Trust Listserv <wsbapt@lists.wsbarppt.com><br>
<b>Subject:</b> Re: [WSBAPT] SBA Loan provisionw<o:p></o:p></p>
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<p style="background:#FFCACA;border:none;padding:0in"><b><span style="font-size:12.0pt;color:black">[EXTERNAL MAIL]</span></b><span style="color:black">
</span><span style="font-size:10.0pt;color:black">DO NOT CLICK links or open attachments unless you recognize the sender and know the content is safe.</span><o:p></o:p></p>
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<p class="MsoNormal" style="background:white"><span style="color:black">I have encountered this and, to my understanding, it is an SBA requirement at times when borrowers are buying a closely held business. <o:p></o:p></span></p>
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<p class="MsoNormal" style="background:white"><span style="color:black">In our case, my seller client took a standard promissory note for 5-10 years or so at about 5% interest — and then there was a very simple SBA standard form that subordinated it to SBA/bank
lender loan note.<o:p></o:p></span></p>
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<p class="MsoNormal" style="background:white"><span style="color:black">It sounds awful, but once you look closer it basically is a “take it or leave it” deal IF your buyer requires SBA financing. In other words, if your seller has leverage to sell to a buyer
who doesn’t need SBA financing, then, fine, that is your leverage. Otherwise, this is SBA’s way to ensure sellers have at least a little skin in the game. <o:p></o:p></span></p>
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<p class="MsoNormal" style="background:white"><span style="color:black">Best, Josh <o:p></o:p></span></p>
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<p class="MsoNormal">Joshua D. McKarcher<o:p></o:p></p>
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<p class="MsoNormal">McKarcher Law PLLC<o:p></o:p></p>
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<p class="MsoNormal">537 6th Street<o:p></o:p></p>
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<p class="MsoNormal">Clarkston, WA 99403<o:p></o:p></p>
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<p class="MsoNormal">(509) 758-3345<o:p></o:p></p>
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<p class="MsoNormal">(509) 758-3314 (fax)<o:p></o:p></p>
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<p class="MsoNormal"><a href="mailto:josh@mckarcherlaw.com">josh@mckarcherlaw.com</a><o:p></o:p></p>
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<p class="MsoNormal"><a href="http://www.mckarcherlaw.com">www.mckarcherlaw.com</a><o:p></o:p></p>
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<p class="MsoNormal"><b><span style="color:black">From:</span></b><span style="color:black">
<a href="mailto:wsbapt-bounces@lists.wsbarppt.com">wsbapt-bounces@lists.wsbarppt.com</a> <<a href="mailto:wsbapt-bounces@lists.wsbarppt.com">wsbapt-bounces@lists.wsbarppt.com</a>> on behalf of Ken Luce <<a href="mailto:Ken.Luce@lucelawfirm.com">Ken.Luce@lucelawfirm.com</a>><br>
<b>Sent:</b> Thursday, March 4, 2021 8:35:15 AM<br>
<b>To:</b> WSBA Probate & Trust Listserv <<a href="mailto:wsbapt@lists.wsbarppt.com">wsbapt@lists.wsbarppt.com</a>><br>
<b>Subject:</b> [WSBAPT] SBA Loan provisionw</span> <o:p></o:p></p>
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<p class="xmsonormal">Am selling business for 1m plus. Buyer wants 5% set aside until loan to buy is paid off in 10 years which could be extended. Says it is SBA requirement. I don’t think so. Could lender and buyer be in cahoots?<o:p></o:p></p>
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<p class="xmsonormal"><b><span style="font-size:9.0pt;font-family:"Arial",sans-serif">Ken Luce</span></b><o:p></o:p></p>
<p class="xmsonormal"><b><span style="font-size:9.0pt;font-family:"Arial",sans-serif">Luce & Associates, P.S.</span></b><o:p></o:p></p>
<p class="xmsonormal"><span style="font-size:9.0pt;font-family:"Arial",sans-serif">4505 Pacific Hwy. E., Suite A</span><o:p></o:p></p>
<p class="xmsonormal"><span style="font-size:9.0pt;font-family:"Arial",sans-serif">Tacoma, WA 98424</span><o:p></o:p></p>
<p class="xmsonormal"><span style="font-size:9.0pt;font-family:"Arial",sans-serif">T: (253) 922-8724</span><o:p></o:p></p>
<p class="xmsonormal"><span style="font-size:9.0pt;font-family:"Arial",sans-serif">F: (253) 922-2802</span><o:p></o:p></p>
<p class="xmsonormal" style="text-autospace:none"><a href="http://www.lucelawfirm.com/"><b><span style="font-size:8.0pt;font-family:"Arial",sans-serif">www.LuceLawFirm.com</span></b></a><b><span style="font-size:8.0pt;font-family:"Arial",sans-serif">
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<p class="xmsonormal"><b><span style="font-family:"Garamond",serif"> </span></b><o:p></o:p></p>
<p class="xmsonormal" style="text-autospace:none"><b><span style="font-size:8.0pt;font-family:"Arial",sans-serif">IMPORTANT NOTICE TO EMAIL RECIPIENTS</span></b><o:p></o:p></p>
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