SBA loans are small business loans guaranteed by the Small Business Administration and issued by participating lenders. As all banks are different, an applicant will likely be presented a different rate structure depending on who you talk to.
"As of early last year, agreements which give the third-party manager sole discretion over business operations are no longer accepted.”
Regardless of which loan structure you chose to move forward with, if you want to pursue third-party management, the qualifying rules and regulations have changed. As of early last year, agreements which give the third-party manager sole discretion over business operations are no longer accepted. The SBA now says the applicant must have meaningful oversight of the third-party manager’s activities which are to be outlined in the agreement.
For the applicant to have meaningful oversight, you must:
- Approve the annual operating budget
- Approve any capital expenditures or operating expenses over a significant dollar amount
- Control the bank accounts
- Business operators must be employed and overseen by the applicant
By following these guidelines, you can both qualify for an SBA loan and have your facility professionally managed by a third party.