This is a valuable thread and @XavierHelgesen has excellent intentions. If you were planning to buy a SMB using the SBA, the deal got sweeter.

That said, there are caution flags I'd like to raise:

1) It's brutally hard. I outline the steps here https://t.co/MZ0beEl0UU

2) Selecting well, and far beyond financials factors, is a skill that takes reps to become proficient. What I thought were slam dunks 10 years ago scare me today.

Please don’t get jacked up on cheap SBA money and go tag the 14th thing you look at.

3) The required personal guarantee is no joke. Yes, it’s 10 year money. Yes, you’re going to buy it at a high cf yield. But, SMBs are volatile and often for reasons that aren’t initially obvious.

If things turn against you, you’ll declare bankruptcy. Seen it happen. Not pretty.

4) You’re almost always buying a risky job.

The idea of cashing checks and “allocating capital” is a joke. Someone somewhere has done it, but I’ve never seen it.

It’s going to be a challenging 7/365 grind to hopefully make very good money. That’s the best you can hope for.

5) Speaking of risk, as the owner, you’re the last to eat. Stuff happens and reserves need to be built to survive long-term. Working capital grows. Equipment breaks.

You’ll often have top employees getting more cash out of the business than the owner.