In this episode, Sean Smith, Managing Partner at Search Fund Ventures, sits down with **Lisa Forrest**, Head of the Self-Funded Search team at **Live Oak Bank**, to dive deep into the mechanics of SBA financing in small business acquisitions.With over **38 years in banking**, Lisa shares:- How SBA 7(a) loans are structured and why they’re a powerful tool for self-funded searchers.- Key underwriting criteria, including cash flow coverage ratios and common deal-breakers.- The rise of investor-backed self-funded deals and what investors should know about the 20% personal guarantee rule.- Real-life stories of post-close challenges—and how smart deal structuring helped borrowers succeed.You’ll also learn how Lisa and her team evaluate hundreds of deals each year, mentor searchers pre-LOI, and run **weekly SBA office hours and deal vetting sessions**.We brake dawn this episode in: 00:00 Introduction to SBA Loans and Self-Funded Search02:31 The Evolution of Self-Funded Searchers04:52 Understanding SBA Loan Structures07:47 Capital Structures in Small Business Acquisitions10:38 Underwriting Process and Debt Service Coverage13:07 Key Considerations for Lenders16:07 Cultural Fit and Management Considerations25:22 Navigating Cultural Integration in Acquisitions27:43 Understanding Debt vs. Equity Perspectives30:16 The Landscape of Self-Funded Search Deals33:30 Lessons from Real-World Acquisition Stories40:27 Resources for Self-Funded SearchersWhether you’re a first-time searcher or an investor learning the space, this episode is packed with tactical insight and real-world guidance.📩 Want to contact Lisa?https://www.linkedin.com/in/forrestlisa/📩 Want to contact or join SMB Investor Network?https://www.smbinvestornetwork.com/👉 Subscribe if you enjoyed this episode and for more interviews like this.💬 Leave your thoughts or questions in the comments