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In a recent interview with Heather Endresen, a seasoned SBA Lender, a range of pertinent topics were discussed.

1. M&A Strategies: Discussing the importance of patience and strategy when merging and acquiring businesses, and methods to identify the right business to purchase.

2. SBA Regulations 2023: An overview of the new regulations introduced by the Small Business Administration (SBA) in 2023.

3. Personal Guarantees: Exploring the reasons behind the necessity of personal guarantees in SBA transactions.

4. SBA Seller's Guarantee: Delving into the implications and mechanisms of a seller retaining a 20% personal guarantee.

5. Seller's Contribution: The significance and mechanics of a seller's contribution towards the down payment.

6. Seller Note Insights: Understanding the structure and conditions of a seller note in SBA transactions.

7. SBA Standby Agreements: A deep dive into how SBA perceives standby agreements.

8. SBA Lender Guardrails* Emphasizing the protective measures in place to prevent overbidding and ensuring the financial feasibility of acquisitions.

9. Sellers, CIMS, and SDE: Understanding the correlation between sellers, Cashflow Information Memorandum (CIMS), and Seller's Discretionary Earnings (SDE).

10. Due Diligence Firms: Highlighting the role and importance of companies that conduct thorough evaluations before business transactions.

11. SBA Down Payments: A detailed look at the down payment requirements set by the SBA.

12. Investment Returns: Discussing investors' expectations of a 30% Internal Rate of Return and its relation to down payments.

13. SBA Ownership Transition: Procedures and requirements for changing business ownership under SBA guidelines.

14. Refinancing with the SBA: Exploring opportunities to refinance for better interest rates through the SBA.

15. SBA Investment Thesis: Discussing how the SBA evaluates M&A borrowers, the compatibility of real estate investments, and more.

16. Debt Service Coverage: Understanding the SBA's requirements concerning the Debt Service Coverage ratio.

17. SBA's New Credit Evaluations: A look at the SBA's new criteria for evaluating applicants based on credit reports, cash flow, and equity or collateral.

18. SBA Pre-Approval: The efficacy getting pre-approved by the SBA.

19. SDE Challenges with SBA: Addressing common issues related to Seller's Discretionary Earnings in SBA transactions.