This week on SBA Today, we're diving deep into a topic often misunderstood in the world of SBA lending: holdbacks. While conventional wisdom might lead you astray, understanding what's truly allowed—and what's not—can be the key to a smoother transaction.

Hosts Paul Long and Tanya Mazurek are joined by special guest Gregory Kovsky, President and CEO of IBA, the Pacific Northwest's oldest and largest business brokerage firm.

With over three decades of experience as a business broker and a deep understanding of SBA lending, Greg brings invaluable insights, even having represented "Godmother of SBA" Joanna Bruno in the sale of her company.

🎯 In this episode, we tackle:

• The common misconceptions surrounding SBA holdbacks and escrow accounts.
• Why SBA loan funds cannot sit in escrow for more than five business days to facilitate a loan closing.
• The critical distinction: SBA's rules on escrow apply to loan funds, not necessarily seller funds.
• What is allowed: How seller holdbacks are legally structured to protect buyers against trailing liabilities like unpaid taxes, warranty issues, or inventory discrepancies.
• The importance of full disclosure of all holdback agreements in the Purchase and Sale Agreement (PSA).
• Why having knowledgeable professionals—from brokers like Greg and legal counsel to experienced lenders—is crucial for navigating complex business acquisitions and avoiding costly mistakes. 

💬 Are you clear on the difference between allowed and disallowed SBA holdbacks? Join the conversation and share your experiences! 

For more information about Greg, go to: https://ibainc.com/

This episode is sponsored by: Res/Title

Res/Title, your "One Stop Shop for SBA closings". 

We're your commercial title and closing company that provides you with the tools and technology to give you an instant quote and Al property reports on any deal in the nation. Whether it's for $35,000 or $35 Mil, we handle closings anywhere in the nation with one point of contact. Get started today! www.res-title.com

⚠️ Disclaimer: The views expressed on this show are our own and not necessarily the views of our employer. ⚠️