Farm Equipment Brokerage
Loan Amount
$2,033,000
Loan Type
SBA 7a loanLoan Term
10 yearsReferral Source
Freeman Lundt associate
Summary
Seek loan for current employee wanting to buy the company as the owner retires.
Subject
An employee was prepared to buy the company from the owner.
Challenge
Borrower only has $5,000 in liquidity
A current employee who does the work of the CEO at the farm brokerage wanted to purchase the business but lacked collateral. Local banks in the farm equipment brokerage community were unwilling to lend the buyer money due to the lack of collateral. With only $5,000 in liquidity, the buyer needed to borrow money for a down payment from a home equity loan. Still, the buyer could only afford to put a minimal down payment.
Outcome
With Freeman Lundt’s lender connections and relationships built over 25 years in the banking industry, we secured a 10-year SBA 7a loan with a minimal down payment for the buyer and a 15% seller carry-on full standby for the life of the loan.
