I Sold TinyPilot, My First Successful Business

Re:I Sold TinyPilot, My First Successful Business by ativzzz on Wednesday May 29, 2024 @03:03PM (#40515585)

> and we received pre-qualification for an SBA loan

What does this mean? How does this work? Shouldn't the buyer take out the loan? Or does it look something like

- tinypilot takes out 600k, which you pocket

- you transfer ownership

- tinypilot is in debt, not the buyer

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Re:I Sold TinyPilot, My First Successful Business by mtlynch on Wednesday May 29, 2024 @03:16PM (#40515734)

Thanks for reading!

Yes, you're correct. The buyer takes out the loan. This was an asset sale, so assets transferred over but not any debts.

The seller (me) can approach a loan broker and show their financials, and the loan broker can say, "I think it's likely that the SBA would approve this loan, and I can connect you with lenders I think would offer the SBA loan for acquiring this business."

The SBA pre-qualification isn't binding or official, but I guess the loan broker's prediction is accurate enough that the brokerage will list businesses as SBA pre-qualified based on the loan broker's assessment.

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Re:I Sold TinyPilot, My First Successful Business by ativzzz on Wednesday May 29, 2024 @06:19PM (#40517736)

Ah I see, it just makes it easier for potential buyers to get a loan. Thanks for the response and the cool blog!

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