Master the SBA Lending Process


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Another one of the top 10 guests of 2018 is returning today to review the SBA process for both buyers and sellers. We’ll discuss what’s changed and things buyers and sellers need to look out for in 2019.

Stephen Speer of ECommerce Lending, based in Florida, is a specialist in eCommerce acquisition deals. He offers a superior financing experience to buyers and sellers. Stephen urges sellers reach out to him to get their game plan ready and advises buyers to get pre-approved in order to get the ball rolling in the right playing field.

Episode Highlights:

  • What Stephen looks for in a business when prepping SBA on the seller side.
  • Why co-mingling of multiple business can be problematic for a seller.
  • His recommendations for cleaning up and consolidating financials when preparing to sell.
  • What the the “debt service coverage ratio” (DSCR), also known as “debt coverage ratio” (DCR), is all about.
  • Where the add backs come from and where Stephen’s team looks for them.
  • He advises companies to use an external bookkeeping outfit – for a great ROI!
  • How Steve and his group think outside the box when it comes to SBA lending and refinancing in order to make the purchases happen.
  • What he looks for in an SBA financing candidate.
  • Just because you can write a check doesn’t mean you don’t have to be likeable.
  • Situations or factors that can stop an SBA loan.
  • The importance of reaching out to Stephen before starting to shop for the business that falls into your price range.
  • Stephen reveals his lending sweet spots – the floor, the ceiling, and his averages.
  • All the financing details – down payment, terms, and interest rate.
  • Why sellers and buyers both need to go through the vetting process.


Mark: Joe last week we aired the episode with Shakil Prasla and we started out the episode with me basically having you fess up to the fact that I have the number one most downloaded and listened to episode.

Joe: You’re amazing Mark. Let’s just say it right now you’re incredible.

Mark: But you’re [inaudible 00:01:07.9] with Stephen Speer and at the risk of becoming a rethread podcast where all we do is bring back our top guests. We are having back one of our top guests this week again.

Joe: Stephen Speer that’s right. He’s an SBA lender which is interesting in that the top two podcasts that we had had been about buying online businesses and we’re brokers that sell online businesses. But hey … look you are amazing and you started this company 11 years ago and your focus was education and helping buyers understand the process and helping them as much as the sellers. So it’s worked. And the fact that our top two podcasts are about buying online businesses has proven out that theory. We had Stephen back because last year there were a lot of changes in the SBA policies and guidelines. The dollar amounts came down a little bit, seller financing wasn’t required on certain deals, and we recapped some of that and we reviewed the process both for if you’re a seller what you need to do to get yourself in good shape to be SBA pre-qualified. And if you’re a buyer out there looking to build that portfolio of businesses or buy your first one what you need to do in order to connect with someone like Stephen and get yourself in a position that you best be able to act quickly when that perfect business comes along.

Mark: So yeah these rules do update on a yearly basis but fortunately this year it doesn’t sound like there’s a ton of new changes. With that said there’s a lot of good information in this podcast because we get these questio

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