Since 2010, Windsor bank clients have funded more than $370 million in business acquisitions through the 7(a) Program.
CHICAGO, IL, February 21, 2018 – On January 24th, Will McClain, Managing Director of Windsor Advantage’s Chicago office, had the opportunity to present to University of Chicago MBA students on best practices using the SBA 7(a) Loan Program for a business acquisition. The future entrepreneurs came well-prepared to the interactive session with questions on how to approach running a search for a business. Working with a “search fund” – a pool of capital raised to support the efforts of entrepreneurs seeking to acquire a privately held company – is not the only option available, as many prospective entrepreneurs can benefit from the “self-funded” model utilizing an SBA loan .
In a 2016 Harvard Business Review article, Rick Ruback and Royce Yudkoff trace the rise in MBA students looking to acquire a business over the last decade. “One of the most common concerns of pursuing a search among students is whether to run a self-funded or traditionally backed search. While the process of engaging in a self-funded search requires thoughtful research and a full-time commitment, it can be extremely rewarding if done correctly,” said Alex Hodgkin, Senior Advisor to entrepreneurs in residence at the University of Chicago’s Booth School of Business. “Consultation on financing options through experienced individuals like Will is critical to finding success.”
Will McClain has managed Windsor’s loan closing desk for more than five years, educating active searchers on the eligibility requirements through the 7(a) Program – which has become an increasingly popular option. “A proactive approach to financing is extremely important when operating a search. For self-funded searchers, every dollar is critical and any chance one has to reduce the timeline to close can be a competitive advantage. By presenting the structure to a seller with the terms fully defined, borrowers can avoid one of the biggest closing hurdles as late changes will often complicate or even derail the acquisition,” said McClain. “Understanding SBA guidelines that will impact the process is imperative to ensuring a searcher can provide a realistic structure from the beginning of the process. Early interaction with prospective lenders can have a very positive effect on the outcome.”
About Windsor Advantage, LLC
Windsor provides a comprehensive outsourced SBA and USDA loan department to lenders nationwide. With more than 150 years of collective government guaranteed lending experience, cutting edge systems and rigid controls, Windsor Advantage is uniquely qualified to support its clients to develop and implement a thoughtful and profitable SBA 7(a) and USDA loan program.
Since 2010, Windsor has processed more than $1.7 billion in government guaranteed loans and currently services a portfolio in excess of $1 billion in loans for more than 75 banks across the US. Windsor Advantage has offices in Chicago, IL; Indianapolis, IN; and Charleston, SC. For more information, please visit www.windsoradvantage.com or call 312-248-8530.