Oct 10, 2024 · Tax Implications - Meaning, if the note is forgiven because business did not meet the forgivable note terms, will the buyer incur tax on the forgiven loan amount.

We discussed the SBA’s most significant rule change in years, which could reshape how searchers approach SBA-financed acquisitions. During the session, we walked through what has changed, …

A seller note is a loan given by the current owner of a business to a new buyer, often in order to bridge the gap between the amount of financing the buyer has and the purchasing price of the business.

While the SBA program does not allow earn-outs, forgivable notes are permissible when structured as conditional forgiveness rather than contingent payments. At the end of the day, the note must be …

May 12, 2025 · Explore the rise and decline of seller notes in SBA transactions. Learn how seller notes once thrived and now face challenges in SBA deals.

Jun 25, 2024 · As for the tax issue raised by ^ redacted ‌, forgivable seller notes are normally treated as reductions to the purchase price (rather than debt forgiveness). As such, forgiving the seller note will …

Mar 18, 2024 · You can always split the Seller Note you have negotiated into different underlying securities, perhaps one more traditional in nature (with any performance-related forgiveness clauses …

Nov 15, 2025 · That would be acceptable for SBA and most lenders will be able to remove the loan payment from debt service call with the long standby. You will need clear verbiage in purchase …

Aug 17, 2023 · I'm exploring using a forgivable Seller Note to try and give them a higher price while mitigating my risk if the company can't maintain the same trajectory they are on this year. The seller …

Mar 10, 2025 · I'm looking to protect downside risk of customer concentration using a forgivable sellers note. The intention is to tie the note forgiveness to revenue generated by the top customer. The …