For a business to “recapitalize” there must be some transaction where new capital comes into the business. Businesses recapitalize for many different reasons, including liquidity for shareholders, expansion capital, or repayment of debt.
Few legal documents you’ll sign in your lifetime are more complex or more daunting than the Purchase and Sale agreement that accompanies the sale of your business. While most sellers naturally focus their chief attention on purchase price and any hold-back amount, there
are often other terms within a purchase and sale agreement that can have greater impact on the final, long-term outcome for the selling shareholder(s).
SBICs are privately owned and managed investment funds, licensed and regulated by SBA, that use their own capital plus funds borrowed with an SBA guarantee to make equity and debt investments in qualifying small businesses.
The 7(a) Loan Program is SBA’s primary program for helping start-up and existing small businesses to secure up to $2 million of bank financing.
The SBA 504 Loan program is designed to provide small businesses with low-cost debt financing of up to $1.3 million for the purchase of property, plant and equipment.
Letters of Credit are commonly used by borrowers to enhance the collateral used to secure a loan, and by businesses involved with international trade to guarantee payment for goods and services.