When closing a deal selecting the right escrow company or attorney to close your deal can make all the difference. If you are utilizing SBA loan financing selecting the wrong company or individual to wrap things up for you can cause a huge delay or even possible the deal.
Just heard from a SBA loan borrower who is buying a mid-sized restaurant with a liquor license who decided to save some money and selected an attorney to play escrow officer who charges by the level of service the client desires. When it came to the ABC license this "attorney/escrow closer" forgot to mention to the lender that he wasn't the one that was handling the transfer of the ABC license! Other issues were also not addressed in this escrow process that are going to delay the SBA loan closing process.
Luckily the owner/seller is a patient person and is willing to wait, but on a high profile much in demand business that is being sold this may not be the case. A backup buyer may be called up if you can't close the deal as expected.
Make sure when you are buying a business you select the right escrow company/attorney who is familiar with the SBA closing process (have your
team of professionals lined up before you even get to this stage!), and will perform all the functions of closing for one overall price.
Don't try to skimp and save a few bucks during this process, it could cost you the deal!•
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