Absolutely. Absolutely. So two options. Not to get super boring and in the weeds, but to close any SBA loan, you have to go out and get life insurance. You generally need hazard insurance. You might need title insurance as part of that.
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How to De-Risk the Personal Guarantee
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We can help you and get you across the line before closing. The second option is we have a time period after closing where we can look at things and also underwrite. So if you've closed recently, we're happy to connect with you, and we do that.
Because there's a lot of crazy paperwork flying around when you're actually trying to get to closing. And we want to have some flexibility in helping people really just get that across the line. And again, it's really just around closing and afterwards as well. So happy to help.
And if you do it after closing, then in fact the sba, the SBA lenders really don't have a say. They can't tell you entrepreneur, business buyer to get, you can or can't get this insurance product. So as much as you guys and you know, I guess me are trying to make sure that this plays nicely with the SBA lenders, it's not like you actually need their permission or, or am I wrong?
That's, that's a really good question. This is a private insurance product. We don't really interact with, with the.
Lender on the policy and it's something. For the individual to take out. Contractually, it doesn't have to be part of that closing process.
If you do want your lender, your SBA loan broker, anyone you're working with, we're happy to collaborate with them, but. It's really a decision for, for you. To make and is not a requirement in any way.
And when you talked about getting the insurance policy written before pre or post close, what do you envision the norm being?
We can provide a quote. Once you have the details of the loan, the name of the business, the type of business, the amount of the loan, we can provide you an initial quote, but we won't actually bind the policy and provide you the policy documents until after the loan closes because we need, you know, we need an actual risk to manage with our insurance policy.
So it necessarily has to be actually written after close because that's when the loan actually exists.
Correct?
Buying a small business sounds simple. Find a company, due diligence, get a loan close. In reality, you wear every hat just to get the deal done.
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