In this episode, Ken Rosenthal shares expert insights on why business owners should consider purchasing their commercial property and the best financing options available, including SBA 7a and 504 loans. Learn how owning your building provides stability, tax benefits, and long-term investment potential. Ken breaks down the differences between conventional loans, SBA programs, and other financing methods, helping you make an informed decision. Whether you're a small business owner or an entrepreneur looking to secure your future, this discussion is packed with valuable advice.

If you liked this content, let's connect on social media:

Instagram: https://instagram.com/mysbapro

Twitter: https://twitter.com/mysbapro

LinkedIn: https://linkedin.com/in/ryanpatryck

Key Chapters:

(00:00) Why Buy Your Building?

(12:53) Owning vs. Renting Benefits

(19:40) 5 Financing Methods

(23:07) SBA 7A vs. 504 Loans

(29:25) Interest Rates Impact

(37:37) Qualifying for SBA Loans

(45:12) Loan Process Overview

(52:30) Success Stories & Examples

(1:00:15) Final Tips & Next Steps

More Subject Matter Experts Playlist

https://youtube.com/playlist?list=PL1v-z-ZlTQ4FuSfq8GRuV9jJY3dd5vw9p&si=04XGGOYICU8pngKN⁠

More ThinkSBA Resources⁠

https://calendly.com/thinksba - Schedule Call

https://g.page/thinksba - Google Business Page & Reviews

https://thinksba.com/faq - Frequently Asked Questions

https://mysbaloanpro.com⁠ - My SBA Loan Pro Podcast

http://youtube.com/@thinksba - YouTube Channel

Thinking about buying a franchise? Already own one but struggling to succeed? In this episode, franchise expert Mark Camras, author of Secrets of Franchise Success, reveals the top strategies top-performing franchisees use to build thriving businesses. Learn how to overcome fear, develop the right mindset, leverage franchisor resources, and create a winning culture. Whether you're considering franchise ownership or looking to improve your current business, this episode is packed with actionable insights.

If you liked this content, let's connect on social media:

Instagram: https://instagram.com/mysbapro

Twitter: https://twitter.com/mysbapro

LinkedIn: https://linkedin.com/in/ryanpatryck

Key Chapters:

• (0:00) Franchise Success Intro

• (0:46) Secrets of Franchise Success

• (1:27) Who Should Franchise?

• (2:17) Franchising vs. Starting Alone

• (3:17) What Franchisors Don’t Teach

• (5:18) Overcoming Franchise Fear

• (8:56) Goal Setting & Accountability

• (10:13) Coaching for Franchise Success

• (13:50) Franchise Coaching Success Stories

• (16:19) Traits of Top Franchisees

• (20:05) Turning Complaints into Growth

• (24:03) Preparing for Franchise Ownership

• (27:00) Vision & Long-Term Planning

• (29:32) Humility & Curiosity Matter

• (33:42) Accessing the CEO Mindset

More Subject Matter Experts Playlist

https://youtube.com/playlist?list=PL1v-z-ZlTQ4FuSfq8GRuV9jJY3dd5vw9p&si=04XGGOYICU8pngKN⁠

More ThinkSBA Resources⁠

https://calendly.com/thinksba - Schedule Call

https://g.page/thinksba - Google Business Page & Reviews

https://thinksba.com/faq - Frequently Asked Questions

https://mysbaloanpro.com⁠ - My SBA Loan Pro Podcast

http://youtube.com/@thinksba - YouTube Channel

In this episode of the My SBA Loan Pro podcast, Ryan chats with Jim Morrison—one of the best in the business when it comes to employer benefits. We dive into group health insurance and cover everything business owners need to know, from staying compliant to finding the right coverage for their team. Jim drops a ton of practical tips to help you steer clear of expensive mistakes and get the most bang for your buck. If you're running a business, big or small, this one's definitely worth a listen.

If you liked this content, let's connect on social media:

Instagram: https://instagram.com/mysbapro

Twitter: https://twitter.com/mysbapro

LinkedIn: https://linkedin.com/in/ryanpatryck

Key Chapters:

0:00 – Why Benefits Matter

1:17 – Who is Jim Morrison?

2:34 – Broker’s Role Simplified

4:13 – Mandatory vs. Voluntary Benefits

6:20 – Benefits for Talent Retention

8:11 – Avoiding Costly Mistakes

12:54 – Compliance Risks

16:25 – Client Success Stories

20:30 – M&A & Benefits Impact

25:45 – 2024 Legislative Updates

30:10 – Fixing Healthcare Flaws

35:50 – Future of Health Insurance

More Subject Matter Experts Playlist

https://youtube.com/playlist?list=PL1v-z-ZlTQ4FuSfq8GRuV9jJY3dd5vw9p&si=04XGGOYICU8pngKN⁠

More ThinkSBA Resources⁠

https://calendly.com/thinksba - Schedule Call

https://g.page/thinksba - Google Business Page & Reviews

https://thinksba.com/faq - Frequently Asked Questions

https://mysbaloanpro.com⁠ - My SBA Loan Pro Podcast

http://youtube.com/@thinksba - YouTube Channel

Unlock the hidden value in your life insurance policy! In this episode, Phil dives into the world of life settlements—what they are, who qualifies, and when selling your policy could be a smart move. Hear real stories of clients who received far more than their cash surrender value and discover the key signs that it might be time to explore your options. Whether you're a senior, a business owner, or a financial advisor, this is essential viewing for anyone looking to make the most of their life insurance.

If you liked this content, let's connect on social media:

Instagram: https://instagram.com/mysbapro

Twitter: https://twitter.com/mysbapro

LinkedIn: https://linkedin.com/in/ryanpatryck

Chapters:

0:00 – Introduction to Life Settlements

0:30 – How Phil Entered the Life Settlement Industry

2:40 – What Is a Life Settlement?

4:13 – When Should You Consider a Life Settlement?

7:18 – Term vs. Universal vs. Whole Life Policies

10:05 – Ideal Age & Health for a Life Settlement

12:21 – Real Client Examples: How Much Cash They Received

16:32 – Pitfalls to Avoid

20:02 – How Life Settlement Buyers Determine Value

24:49 – Why Many Financial Advisors Don’t Know About Life Settlements

28:03 – Tax Implications of Selling Your Policy

32:15 – Common Uses for Life Settlement Cash

36:40 – How to Get Your Policy Evaluated

40:50 – Debunking Whole Life Insurance Myths

45:00 – Final Takeaways & Next Steps

More Subject Matter Experts Playlist

https://youtube.com/playlist?list=PL1v-z-ZlTQ4FuSfq8GRuV9jJY3dd5vw9p&si=04XGGOYICU8pngKN

⁠More ThinkSBA Resources

⁠https://calendly.com/thinksba - Schedule Call

https://g.page/thinksba - Google Business Page & Reviews

https://thinksba.com/faq - Frequently Asked Questions

https://mysbaloanpro.com⁠ - My SBA Loan Pro Podcast

http://youtube.com/@thinksba - YouTube Channel

In this episode, Tim Malott, a seasoned M&A Advisor and Investment Banker, reflects on his journey from CPA and Bank President to Managing Partner of Shoreline Partners. With over 30 years of experience, Tim shares his approach to problem-solving, the nuances of selling privately held companies, and his commitment to creating an unreasonable value for his clients.

He offers insight into the M&A process, the distinctions between business brokers and investment bankers, and the importance of preparation and storytelling in maximizing business value.

Whether you're a business owner, investor, or simply interested in mergers and acquisitions, this episode provides valuable perspectives on navigating the complexities of the industry.

Stay tuned for actionable tips and expert advice from Tim throughout this entire episode.

If you liked this content, let's connect on social media:

Instagram: https://instagram.com/mysbapro

Twitter: https://twitter.com/mysbapro

LinkedIn: https://linkedin.com/in/ryanpatryck

Chapters:

0:00 - Introduction

1:02 - The Start of Creative Problem-Solving

2:47 - Genesis of Shoreline Partners

4:09 - What Shoreline Partners Does

7:44 - The M&A Process: From Preparation to Closing

10:02 - Shoreline vs. Business Brokers: Key Differences

12:14 - Delivering Unreasonable Value

17:11 - Preparing Your Business for Sale

19:10 - Managing Seller Emotions During M&A

21:35 - Understanding Buyers and Financing

24:11 - Industries Ripe for Acquisition in San Diego

25:28 - The Current M&A Market and Future Predictions

27:50 - The Risks of Waiting to Sell

More Subject Matter Experts Playlist

https://youtube.com/playlist?list=PL1v-z-ZlTQ4FuSfq8GRuV9jJY3dd5vw9p&si=04XGGOYICU8pngKN

⁠More ThinkSBA Resources

⁠https://calendly.com/thinksba - Schedule Call

https://g.page/thinksba - Google Business Page & Reviews

https://thinksba.com/faq - Frequently Asked Questions

https://mysbaloanpro.com⁠ - My SBA Loan Pro Podcast

http://youtube.com/@thinksba - YouTube Channel

Today, we’re discussing the structure of most business acquisition transactions when using SBA financing. If you’re looking to acquire a business, understanding these financing components is critical.

Let’s break it down.

SBA Loan Structure Overview Most SBA-financed business acquisitions involve three key components:

This three-tiered structure is designed to align the interests of all parties involved while ensuring the deal is well-capitalized.

Financing Larger Transactions

For acquisitions exceeding $5 million, additional mechanisms like Pari Passu arrangements may be utilized. In this structure, additional lenders provide funding on equal terms with the SBA loan. This allows buyers to pursue larger opportunities while maintaining similar financial leverage.

Interest Rates and What to ExpectSBA loans are known for their competitive interest rates, which are tied to the Prime Rate. The range typically falls between Prime + 0.75% and Prime + 2.75% for SBA loans above $500,000.

Where you fall within that range depends on two primary factors:

To secure the best terms, it’s essential to present a well-prepared business plan and demonstrate your financial and operational capabilities.

Key Advantages of SBA Financing SBA loans are structured to support buyers in acquiring businesses efficiently. Key benefits include:

Conclusion:SBA financing is an excellent option for structuring business acquisitions, offering flexibility, accessibility, and competitive terms. Whether you’re acquiring a business for $500,000 or over $5 million, understanding these components is vital to your success.

Host Introduction:

In today’s episode, we’ll focus on SBA financing for franchise startups. If you’re thinking about starting your own franchise location, this is the roadmap you need to follow to secure financing and set yourself up for success.

Let’s dive into the process.

Understanding SBA Financing for Franchises

SBA loans are an excellent option for funding franchise startup locations. They provide flexible terms, competitive interest rates, and the ability to finance many of the costs associated with launching a franchise. However, like any business loan, there are steps and upfront costs you need to address before submitting your application.

Steps to Prepare for SBA Loan Submission

To secure SBA financing, you’ll need to follow a series of essential steps:

1. Qualify with the Franchise

Before anything else, you need to ensure you meet the franchise’s qualifications. Most franchises have specific requirements for financial stability, business experience, and operational readiness. It’s critical to get their approval before moving forward.

2. Buy Your Franchise Territory

The next step is to purchase your franchise territory. This formalizes your agreement with the franchisor and lays the groundwork for your startup.

3. Find a Location

Location is key to your franchise’s success. Once you’ve identified a viable site, you can proceed to the next step.

4. Execute a Letter of Intent (LOI)

The LOI is a non-binding agreement that outlines the terms for leasing or purchasing your selected property. It’s an important document that lenders will want to review.

5. Hire an Architect & Apply For Permits

At this stage, you’ll need to engage an architect to prepare detailed drawings and develop a preliminary construction budget. This budget should include all soft costs including permitting fees, materials, labor, and furniture, fixtures, and equipment (FF&E).

Preparing Your Loan Application

Once you’ve completed these steps, your SBA loan application is ready to be submitted to lenders. These items demonstrate to lenders that you have a clear plan and a viable business opportunity, both of which are essential for loan approval.

Important Considerations for Borrowers

It’s important to understand that many of these steps—such as paying for franchise fees, architectural drawings, and initial soft costs—must be completed before you’re guaranteed funding. This means you’ll incur some upfront expenses, which can feel risky.

However, working with a trusted partner like ThinkSBA can make all the difference. We guide you through the process, ensuring that your efforts are focused, your expenses are justified, and your financing is positioned for approval. Our expertise gives you the peace of mind that your hard work will pay off.

Conclusion:

Launching a franchise startup is an exciting venture, but it requires careful preparation and strategic planning to secure SBA financing. By following the steps we’ve outlined and partnering with a trusted advisor like ThinkSBA, you can confidently navigate the process and position yourself for success.

Join Ryan Smith, Principal and Founder of ThinkSBA and Attorney Scott Oliver with Lewis & Kappes as they delve into the intricacies of the SBA loan legal closing process, recent SOP changes, and the crucial role lender legal counsel plays in ensuring lender compliance.

Gain valuable insights into Landlord Lien Waiver and Collateral Access Agreement, attorney negotiations, and the overall loan closing process.

Whether you're a seasoned lender or a prospective SBA loan applicant, this podcast offers essential knowledge for successfully navigating the SBA loan application process from start to funding.

Stay tuned for actionable tips and expert advice from Scott throughout this entire episode.

If you liked this content, let's connect on social media:

Instagram: https://instagram.com/mysbapro

Twitter: https://twitter.com/mysbapro

LinkedIn: https://linkedin.com/in/ryanpatryck

Chapters:

00:00 - Introduction

00:55 - Scott's Bio

03:42 - Closing Process Overview

07:12 - Landlord Waivers and Negotiations

08:56 - Good vs. Bad Buy-Side Attorneys

11:23 - Uncommon Requests and Scenarios

14:15 - Flexibility of SBA Loan Documents

17:15 - Recent Changes to SOP Manual

20:37 - Process After Commitment Letter

26:10 - Partial Change of Ownership

36:22 - Forgivable Seller Note & Expansion Loans

More Subject Matter Experts Playlist

https://youtube.com/playlist?list=PL1v-z-ZlTQ4FuSfq8GRuV9jJY3dd5vw9p&si=04XGGOYICU8pngKN

⁠More ThinkSBA Resources

⁠https://calendly.com/thinksba - Schedule Call

https://g.page/thinksba - Google Business Page & Reviews

https://thinksba.com/faq - Frequently Asked Questions

https://mysbaloanpro.com⁠ - My SBA Loan Pro Podcast

http://youtube.com/@thinksba - YouTube Channel

Bruce Marks has made a career out of mastering lower middle market business acquisition financing by leveraging the SBA 7(a) loan program coupled with a Pari Passu conventional loan for loan requests that exceed the SBA's $5 Million borrowing limit.

In this Episode Bruce pulls back the curtain revealing how to structure a Pari Passu loan for success by diving deep into risk assessment, the searcher, the target business along with working capital, quality of earnings report, debt service coverage ratio and a whole lot more.

If you liked this content, let's connect on social media:

Instagram: https://instagram.com/mysbapro

Twitter: https://twitter.com/mysbapro

LinkedIn: https://linkedin.com/in/ryanpatryck

Chapters:

00:00 Introduction

00:29 - Bruce's Bio

00:38- Assessing Risk in Loan

06:01 - Preparing for Pari Passu

19:39 - Searcher Profile

21:12 - Importance of Credibility

26:36 - Qualifications for Business Acquisition

22:54 - Experience vs Education

28:54 - Business Model & Sustainability

31:49 - Borrower Profile

32:56 - Transferrable Skills & Experience

40:44 - Case Studies

51:18 - Debt Service Coverage Ratio

59:00 - Understanding Business Working Capital Needs

01:03:33 - Deal Breakers & Industry Preferences

01:07:00 - Searcher Preparedness

01:14:32 - Contact Bruce

More Subject Matter Experts Playlist

https://youtube.com/playlist?list=PL1v-z-ZlTQ4FuSfq8GRuV9jJY3dd5vw9p&si=04XGGOYICU8pngKN

⁠More ThinkSBA Resources

⁠https://calendly.com/thinksba - Schedule Call

https://g.page/thinksba - Google Business Page & Reviews

https://thinksba.com/faq - Frequently Asked Questions

https://mysbaloanpro.com⁠ - My SBA Loan Pro Podcast

http://youtube.com/@thinksba - YouTube Channel

Working capital has many meanings and definitions depending on the application of funds. For the purpose of this podcast, I will define working capital as capital provided to a business to fund tangible recurring business expenses or capital expenditures.

Working Capital For Growth

As an SBA Loan Broker, I often receive inquiries from SMB owners for working capital to fund the growth of their business. Their definition of working capital is the transfer of funds from the lender's bank account to their bank account without any strings attached. This is not the definition of working capital.

Let's set the record straight.

Banks provide working capital to fund specific uses such as the purchase of equipment, furniture, fixtures, tenant improvements and fixed expenses such as rent, utilities, maintenance, and employee wages.

Therefore, it is important to understand that in preparing your application to submit to SBA lenders, you will need an itemized list of what we call "Use of Proceeds." Just as it implies, the phrase "use of proceeds" simply means identifying the tangible items the funds will be used for by the borrower.

To be crystal clear. When a borrower is requesting working capital for growth, they should not expect the funds to be sent to them without providing a detailed use of proceeds.

Working Capital To Acquire a Business

When applying for an SBA loan to acquire a business, lenders will nearly always provide working capital to sustain the borrower through the transition of the business. This typically includes working capital to pay up to 90 days of fixed expenses and what I refer to as "free working capital," which means the ability to spend the capital without strings attached. This amount of free working capital is normally small compared to the larger amount used for tangible capital expenditures or recurring fixed expenses.

You Are Ready To Apply

Now that you know how to properly prepare your application, you can successfully apply for working capital to grow your existing business or successfully transition a newly acquired business.

If you liked this content, let's connect on social media:

More ThinkSBA Resources

⁠⁠⁠⁠https://calendly.com/thinksba⁠⁠⁠⁠ - Schedule Call