On this episode, we’re joined by Jason Lumpkin, Senior Vice President of Auto Dealerships, and Connor Duncan, Vice President of Auto Dealerships at Live Oak Bank — leaders in dealership financing. Jason and Connor share their expertise in SBA loans, floor plan lending, and how their tailored financing solutions help both aspiring and established dealers achieve their business goals.
Key Takeaways:
(03:47) Live Oak Bank is the largest SBA lender, with $350M funded in dealership loans.
(06:27) Education is critical to making SBA loans accessible in the franchise
automotive space.
(11:58) Live Oak focuses on income statements, not just balance sheets, for financing decisions.
(14:25) OEM flexibility on debt-to-equity requirements varies; some brands allow exceptions for the right operator and store.
(21:22) SBA loans provide 10- to 25-year terms and up to 90% leverage, easing cash flow concerns.
(25:42) Floor plan lenders often require significant equity injections, adding challenges to smaller deals and new buyers.
(30:32) Floor plan lending has become a significant challenge, requiring early focus in deal planning.
(34:17) Projection-based deals can unlock underperforming stores with significant growth potential.
(44:12) First-time buyers benefit from building a strong support team, including brokers and attorneys.
(49:15) Discipline and defining a clear buy box are crucial for dealership acquisition success.
Additional Resources:
Driving Performance | Website
https://performancebrokerageservices.com/driving-performance-podcast/
Performance Brokerage Services | Website
https://performancebrokerageservices.com/
Performance Brokerage Services | LinkedIn
https://www.linkedin.com/company/performance-brokerage-services
Jason Lumpkin | LinkedIn
https://www.linkedin.com/in/jason-lumpkin-571bb218/
Connor Duncan | LinkedIn
https://www.linkedin.com/in/connorduncan/
Live Oak Bank | LinkedIn
https://www.linkedin.com/company/live-oak-bank/
Live Oak Bank | Website
SBA Loan Program
https://www.sba.gov/funding-programs/loans
National Automobile Dealers Association (NADA)
https://www.sba.gov/funding-programs/loans
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