Mastering SBA 7(a) Biz Aq Loans: Structure Deals for Perfect Compliance — 11/4
A Coleman Training Webinar
Date: Tuesday, November 4, 2025
Time: 2:00 p.m. Eastern
Includes e-certification & recording
In FY 2025, 23.6% of SBA 7(a) loan dollars—over $9 billion—were used for business acquisitions, confirming that change-of-ownership financing remains one of the most active and scrutinized segments of the SBA program. With Baby Boomers still owning approximately 40% of all U.S. small businesses, the volume of transition transactions continues to rise. And, the new SOP 50 10 8.1 rules demand sharper attention to loan structure, valuation documentation, and guaranty protection.
Led by Lance Sexton, former SBA Deputy Director of the Little Rock Servicing Center and current EVP of Phoenix Lender Services, this training provides a practical, compliance-focused guide to underwriting and closing SBA business acquisition loans. Lance will explain how to structure deals involving asset and stock purchases, apply equity injection and collateral rules, and evaluate goodwill and business valuation standards to ensure every transaction aligns with SBA’s requirements.
This session breaks down the most significant changes affecting lenders today — including how to document and justify 10% equity injections, when seller standby notes qualify, and how to verify collateral coverage against business valuations. Attendees will also learn how to structure transactions involving existing and partial owners, ensure proper guaranties, and produce credit memos that stand up to examiner scrutiny.
You’ll leave with the tools to confidently structure compliant, defensible SBA 7(a) change-of-ownership loans — supported by real-world examples from Lance’s 40 years of SBA origination, servicing, and liquidation experience.
Top 15 Topics
- Current SBA 7(a) Market Landscape: 23.6% of all SBA 7(a) dollars—over $9 billion—funded business acquisitions in FY 2025.
- Defining a Change of Ownership: SBA qualification criteria.
- Eligibility and Purpose Requirements: How to document that the transaction promotes the sound development or preservation of a small business.
- Equity Injection Standards: Understanding the 10% rule, acceptable sources, and standby seller financing.
- Exceptions to the Equity Requirement: When same-owner expansions qualify for no injection.
- Guaranty Rules: Determining who must personally guarantee, including the two-year rule for selling owners who retain interest.
- Business Valuation Requirements: When to order third-party valuations and how to document lender-prepared reports under $250,000.
- Collateral Verification and Goodwill: Aligning loan amounts with business valuation and ensuring pledged assets are properly secured.
- Debt Refinancing During Ownership Changes: Handling seller notes and existing debt refinances.
- Credit Memo Documentation: Required analysis for equity injection, valuation, projections, and standby agreements.
- Loan Maturity and Term Structuring: Applying blended maturities for real estate, equipment, and working capital components.
- Documentation Checklist: Required tax transcripts, valuations, purchase agreements, and collateral evidence for every transaction.
- Debt Service Coverage (DSCR): Underwriting projections correctly to ensure compliance with SBA’s minimum DSCR coverage.
- Best Practices from the Field: Real case examples from SBA servicing and liquidation—how to structure for compliance and guaranty protection.
- Underwriting Buyer Experience and Managerial Capability: Evaluating whether the new owner has the skills, training, and operational experience to successfully run the business — and how to document this analysis in the credit memo.
10 Things You Will Learn
- How to determine when a change of ownership qualifies as a new business or expansion.
- The correct structure for co-borrowers in asset and stock purchase transactions.
- How to calculate and document the 10% equity injection.
- When seller standby notes can count toward required equity.
- SBA requirements for third-party business valuations and lender-prepared valuations.
- How to allocate collateral between tangible assets, goodwill, and intangible value.
- What SBA expects in the credit memo for change-of-ownership loans.
- How to apply and verify the debt-to-worth ratio (9:1) before ownership transfer.
- Rules for guaranties, seller retention, and transitional consulting arrangements.
- How to document projections and assumptions to meet SBA’s 1.15 DSCR standard.
Who Should Attend
SBA and commercial lenders, credit analysts, loan underwriters, portfolio managers, CDC professionals, loan closers, and any lending staff involved in structuring, documenting, or reviewing SBA 7(a) business acquisition loans.
Why This Training Stands Apart
Why attend this training instead of relying on SBA or other industry programs? Because we bring independence. SBA’s training tells you what the rule says, but not always why it matters or how it affects your daily operations. Our approach is different: we dig into the context behind the changes, explain why SBA made them, and show you how to apply them in real-world lending situations. We are not bound by agency messaging, so we can highlight risks, gray areas, and lender responsibilities with clarity and without bias. The result is practical, contextual guidance that helps you manage your portfolio to protect your guaranty with confidence.
Your Training Instructor
Lance Sexton
Lance Sexton brings unmatched expertise to SBA servicing and liquidation training. A former small business owner himself, Lance understands firsthand the challenges lenders and entrepreneurs face. He has more than 40 years of experience in SBA lending, including 20 years directly managing portfolios of SBA loans.
Lance served as Deputy Director of the SBA’s Little Rock Servicing Center, giving him unique insight into how the Agency views compliance, servicing, and guaranty purchase. He has personally overseen SBA loan portfolios worth billions, and today he serves as Executive Vice President and Managing Director of Servicing and Liquidation at Phoenix Lender Services.
Lance is also an award-winning educator, having earned three national industry awards for “Best Online Learning Product.” He is an adjunct faculty member at the University of the Ozarks and has been affiliated with Coleman Publishing for over 11 years, where he has trained thousands of SBA professionals nationwide.
By the Numbers
– Personally involved in more than 500 SBA 7(a) guaranty purchase cases totaling over $500 million
– Serviced portfolios for more than $2 billion in SBA 7(a) loans
– Managed servicing, liquidation, and guaranty purchase for over $4 billion in PPP loans
– 40+ years of SBA lending and servicing expertise
How the Webinar Works
We use Microsoft Teams as the webinar platform. All Coleman webinars are recorded and a link is sent to all attendees.
Single Site License
The single site license grants your institution one viewing of the webinar. It is permissible to use a single site license on one device in a conference room to be viewed by multiple attendees The webinar can be viewed on any device.
Webinar Links and Handouts
The webinar link will be included when we distribute the presentation and handouts shortly before the webinar.
Participants Earn Certificates of Participation
All Coleman Webinar attendees will receive a certificate of participation. This documents your continuing education history for SBA and your regulators.
Questions
Questions throughout the webinar are strongly encouraged. There are two ways to ask a question. The first is to ask the question via the chat in Microsoft Teams. The second is to send an email to anna@colemanreport.com. Also, feel free to ask pre and post-webinar questions.
The Fine Print
1) Substitutions are allowed at no charge.
2) Cancellations receive a 100% credit for any Coleman product.
3) As with all our products, we offer a 100% money back satisfaction guarantee — no questions asked.
3 Easy Ways to Order
1) ONLINE — Register and pay online via QuickBooks $500 or QuickBooks $800
2) EMAIL –Send an email to cindy@colemanreport.com with “Webinar Registration” in the Subject Line. We will do all the paperwork and either send you a sales receipt or an invoice.
3) PHONE — Call us at 818-790-4591.
Bob Coleman
Publisher, Coleman Report
bob@colemanreport.com