Yes, you're correct. The buyer takes out the loan. This was an asset sale, so assets transferred over but not any debts.
The seller (me) can approach a loan broker and show their financials, and the loan broker can say, "I think it's likely that the SBA would approve this loan, and I can connect you with lenders I think would offer the SBA loan for acquiring this business."
The SBA pre-qualification isn't binding or official, but I guess the loan broker's prediction is accurate enough that the brokerage will list businesses as SBA pre-qualified based on the loan broker's assessment.
What does this mean? How does this work? Shouldn't the buyer take out the loan? Or does it look something like
- tinypilot takes out 600k, which you pocket
- you transfer ownership
- tinypilot is in debt, not the buyer
?