#435: The New SBA Playbook for Acquisitions with John Thwing

SBA loans have always been a key tool for financing business acquisitions, but recent changes have opened up new opportunities for both buyers and sellers. If you're thinking about selling your business, acquiring one, or financing a transition, these updates could have a major impact on your strategy. 

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In this episode, I sit down with John Thwing ("The SBA Guy") from Live Oak Bank to break down the biggest changes, including how SBA loans now allow for partial buy-ins, why internal transitions are more viable than ever, and what banks are really looking for when funding deals.  

We also dive into how liquidity is often a bigger risk factor than leverage, why most business owners overestimate their company’s valuation, and how to structure financing to align buyer and seller incentives.  

If you’re considering a transition and want to understand how SBA loans fit into the picture, this episode will give you the insights you need to make a smart, strategic move. 
 
John Thwing ("The SBA Guy") is an SBA lending expert with decades of experience helping buyers acquire businesses through structured financing. As a leader at Live Oak Bank, one of the nation’s largest SBA lenders, he specializes in creative deal structuring, working capital strategies, and helping acquisition entrepreneurs navigate the loan process. Over the years, he’s funded hundreds of business purchases and has become a go-to resource for anyone looking to buy or sell a business using SBA financing. 

 
Chapters:  

• (00:00) Introduction: Why SBA Loans Create Life-Changing Events 

• (07:16) Understanding The Financial Story Your Business Tells 

• (17:47) Three Types Of Buyers In The SBA Acquisition Market 

• (26:05) How Post-COVID Business Trends Impact Bank Decisions 

• (32:13) What Makes A Business Viable For SBA Acquisition 

• (41:50) Liquidity Vs Leverage: The Risk Dynamic Most Miss 

• (46:15) Breaking Free From The Owner-Operator Financial Trap 

• (50:29) Why Working Capital Makes Or Breaks Acquisition Deals 

• (1:01:48) Internal Vs External Buyers Transition Risk Assessment 

• (1:16:03) New SBA Partial Buy-In Rules Creating Flexible Exits 

• (1:26:06) Matching Capital Structure To Real Business Goals 

• (1:31:03) Final Advice For Healthy Transitions While Still Growing 

• Tune in next week for Shannon Susko of Metronomics 

• Rate, comment, and share with the owner/operators you know! 

 

Ryan Tansom is a seasoned entrepreneur, speaker, and the founder of Independence by Design™, a transformative ownership framework for growth-oriented business owners. After turning around and selling his family business in an eight-figure exit, Ryan spent over a decade dissecting the lessons learned from his journey. His mission is to help other business owners avoid the pitfalls he encountered by providing them with the tools and knowledge to align their business operation