WEEKLY SBA/SMB ETA WEEKLY POWER HOURS. ALL THINGS SBA and industry related updates each Wednesday. REGISTER HERE: lnkd.in/gnTCnh6Z POLICY~SOPs / PROCEDURES / LOAN STRUCTURING / PROCESS ROAD MAP / CASHFLOW MODELS / DEAL VETTING TEMPLATES / INDUSTRY LOW DOWN / PRE-LOI COACHING / AND MORE ~ FOR FREE Every WEDS at 9 am PST / Noon EST ~ Click link to register and choose the dates that work for you. Join as often as you like! When you register, you'll receive our deal-vetting templates and analysis tools for making your search process more efficient! Interact weekly with Fellow Searchers via LIVE ZOOM and Live Q&A

SEATTLE ETA/SMB MEET-UP with Special Guest June 2 Reposting to take out the starting @. Rookie X! 😂 @sarah_m_andrews @guessworkinvest @TreewalkQOE

SMBash DALLAS! @_athenasimpson AQUI -MATCH NORTHWEST BANK in the House! @NWSB Working with aspiring entrepreneurs with tactical, actionable information. @KHendersonCo @TwoTeesSMB @sarah_m_andrews @MrJoshFro

Thinking about buying a construction company? Read this first. A lot of deals look great… Until you realize the revenue is tied to bonding. And bonding doesn’t automatically transfer to you. Here’s the reality: • If the business needs bonding, your deal depends on it • Sureties care about your experience and your personal balance sheet • No bonding = no jobs = no revenue Simple as that. Most searchers miss this early. They underwrite the deal… but not their ability to get bonded. And the common fallback? “Maybe the seller will stay on and support bonding.” That’s usually wishful thinking. Sellers don’t want long-term obligations And tying their personal guarantee to your future? Rarely happens. Bottom line: If bonding is required, it’s not a detail—it’s a gating issue. Underwrite your ability to get bonded as hard as you underwrite the business. Or you’re not buying a company… You’re buying a problem. @sarah_m_andrews @andyharbut

ETA Community Spotlight: Lisa Forrest, Northwest Bank: ebitcommunity.com/p/eta-comm… Was interviewed by Jason Hunt of EBIT Community on @sarah_m_andrews and our recent move. And some of our thoughts about the current acquisition market. EBIT Community is a weekly newsletter for acquisition entrepreneurs. It breaks down the mechanics of buying a small business and features live listings and conversations with industry experts. ebitcommunity.com

It should be a national holiday! Round 1 TH.

Wharton ETA conf delivered! Such a privilege to support the next gen business owner. This is important work in not only preserving Main Street jobs but also growing the economy. Bravo to the ETA CLUB!

Searchers: don’t let Deal #1 limit Deal #2 •The cheapest SBA loan isn’t always the right move •Ask early: can this lender fund your next acquisition? •Some lenders don’t have capacity beyond your first deal •Switching lenders later gets tricky— → SBA lenders won’t go behind another SBA loan → Refinancing an existing SBA loan has real nuance I’m seeing this firsthand: working on 5 deals right now trying to solve this exact constraint. 👉 If you plan to grow, pick a lender for the platform the path Optimizing solely for rate on Deal #1 can cost you Deal #2 @sarah_m_andrews

Not all SBA term sheets are created equal. If you get a term sheet too fast and your gut says something’s off — trust it. If a BDO isn’t asking the hard questions early, underwriting will ask them later… and that’s when deals stall. The best lenders loop in credit from day one. Work with those lenders. @sarah_m_andrews @smbash

Funded-Search CEOs — exited or close to it? Thinking about your *next* acquisition and want 100% or near‑majority ownership? Join Lisa Forrest & Sarah Andrews for a special session on how SBA financing can power your next deal. DM us or email to get added to our upcoming special session in the works: lisa.forrest@northwest.com sarah.andrews@northwest.com @sarah_m_andrews

Customer concentration is common in LMM/SBA deals. Not always bad for the seller. But for a high‑leverage SBA buyer? That risk hits harder. If any customer/referral channel >20%, pay attention. Key questions: • Can YOU replace that revenue if lost? • Can the industry/labor market even support growth? Ways to mitigate: • Price so DSCR still holds if key customer leaves • Seller note tied to retention • Escrow holdback • Or: no senior debt → equity seller note earnout (but get a LOC before close) Truth: sometimes the deal is fine… just not for an SBA loan ~ first‑time buyer with no industry experience heavy leverage. @sarah_m_andrews @AgeofHoffman @AdamMarkleySMB @smbash

It was a great discussion!

I’m excited to share that @LisaGForrest and @sarah_m_andrews have joined NORTHWEST BANK to support entrepreneurs acquiring and growing great small businesses. We all know that Entrepreneurship Through Acquisition (ETA) is reshaping how operators step into ownership — and the SBA remains one of the most powerful tools making that possible. After nearly 9 years for me and 14 for Sarah at Live Oak Bank helping hundreds of acquisition entrepreneurs, this next chapter is intentional. The ETA ecosystem is still early — and evolving fast. More operators choosing to buy vs build. More great businesses transitioning to new ownership. At Northwest Bank, we’re building a platform focused on serving: • Acquirers • Management buyouts • Partner buyouts • Owner-operators pursuing SBA-backed acquisitions If you're buying a business or active in ETA/SMB acquisitions, we’d love to (re)connect. Let’s build the next generation of small business ownership.

Growth isn’t free. And it sure as hell doesn’t just happen. You need excess liquidity. Not your operating cash. New machine? New sales hires? Expect ramp-up time. Integration. Training. Downtime. Delays. If you’re using payroll, rent, or lender money to “fund growth”… Stop. That’s not strategy — that’s gambling. Talk to your CFO. Or a fractional one. Or your CPA. More debt won’t fix a liquidity crunch. Bank deferrals don’t save you — they sink you deeper. You’ll end up needing equity. So plan ahead. Stack cash first. Then grow. @sarah_m_andrews @Slackwatercap @AdamMarkleySMB @systemsixbooks @patrickdichter @SMB_Attorney @SMB_ash @SBA_Matthias @MikeBotkin_ @CTW_SMB @profithuntercfo

As we recognize Veterans Day and honor those who have served our country, we are proud to share a special fireside chat with two incredible clients (James Maxwell and Jordan Inman) who are not only business partners but are also both military veterans. Their journey from serving in uniform to leading and growing small businesses is a powerful example of continued service. In this conversation, @sarah_m_andrews and @LisaGForrest talk with James and Jordan about their transition from military life to business ownership, their experience acquiring two companies and the values that guide them as leaders. Their story is one of resilience, purpose, and impact. It’s a reminder that service doesn’t end when the uniform comes off. We hope you’ll take a moment to watch, reflect and celebrate the veterans in your life and community. youtu.be/jwBaKoQsdg4