How 1 SBA Loan Brought Down 2 Businesses

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So that, that kind of was the, the original structure. Matias was going to take care of the entire down payment. And we were both taking out an sba.

Well, he was taking on the SBA loan. I wasn't even gonna have to be do the personal guarantee there, which kind of brings in like where we kind of ran into, into some issues, right. So we're diligencing the deal.

The numbers look good, the business looks great, looks healthy. We knew we were going to do it. Matthias knew he was going to do an SBA loan.

And once we started talking to different banks is where he started to get a little pushback in terms of like, and this is like kind of a side tangent here, but my income the year before was through the roof. It was absurd. It was because I left Deloitte after they reimbursed me for my second semester year of business school. I got my Google signing bonus.

I had a pretty healthy salary at Google. And then they vested a bunch of my equity. So in my W2, it looked like I made like over $300,000 that year.

So the bank, to their cons, their initial concern to Matthias was, hey, you don't have a construction background. Like, why are you going to be able to run this business? And that's actually the impetus for Matthias going and searching for an operator with this specific set of qualifications.

Once we submitted, kind of myself, we added me to the deal. The bank essentially said, hey, this is great. Yeah, Edgar will work, but he needs to have more skin in the game.

He's the kind of guy that could easily go and get a, you know, $400,000 a year job somewhere else. Like, that's definitely not the case, but on paper it just looked that way because of my earnings the year before. And so they wanted me to have more skin in the game.

And so that changed the, the structure for Matthias and I. At that point, we had got to know each other even better. And so I was going to put in some equity.