Wireless Retail Franchise (with four retail locations) 

$2,500,000

This transaction involved a current owner with a minority interest in the business seeking to buyout the majority owner. The client was also seeking to purchase three pieces of real estate and assume the lease on the fourth.

Due to limitations with SBA guidelines and the fact that one of the properties was less than 50% owner-occupied, some of the loan uses were not SBA eligible. In addition, the borrower had little cash to put into the deal.

With the help of our business banking colleagues, USFC evaluated all available collateral and structured three separate solutions for our client: one SBA loan for two pieces of real estate and the majority of the goodwill and business enterprise value, and two conventional loans for the third piece of the real estate and the remainder of the goodwill. Each loan had unique terms and collateral pools that were satisfactory to the Bank, SBA and client.

Finally, we were able to successfully make the case to the SBA that the existing minority interest in the business should satisfy the equity injection and the SBA agreed.

In the end, the borrower was able to purchase the business with very little cash out of pocket, complete improvements to the locations, and turn their attention on growing the business. The transaction further demonstrates USFC’s commitment to arrange creative financing solutions for all of our clients. We work diligently to get the deal done.