Succession Loan
Succession Financing Loan
Keeping Wyoming businesses running is the goal of the Succession Loan Program. As it is set forth by W.S. 9-12-301 (a)(xii) the Succession Financing Loan is designed to help transition ownership of an existing Wyoming business. The Succession Loan in participation with a bank would provide financing for the purchase of a business that is at least 7 years old. The WBC portion of the loan would be used to fill the unsecured or “blue sky” portion of a purchase helping to enable Wyoming Businesses to continue in Wyoming.
Who is Eligible
- New business owners that are purchasing a Wyoming Business that has been around for the last 7 years. Where the new owners are requesting debt financing from a Bank.
Loan Details
- Maximum WBC participation is the lesser of $500,000 or 50% of the total loan amount.
- Maximum repayment term not to exceed 10 years.
Fees & Rates
- Minimum loan origination fee of 1%
- Interest rate range: 4% up to Prime +2
Use of Funds
- Purchase of a Wyoming business that has been around for the last 7 years
Process
- Start at the bank and let them know you are interested in the WBC Succession Loan
- If you don’t mention WBC Succession Financing Loan up front, they might just give you regular bank terms
- Once the bank side is secure and sets the loan term
- Submit the application including all items on the checklist
- Loan must be approved by the WBC Board of Directors
- Funds disbursed, participation documents signed, and the loan is closed
- The bank services the loan so that the borrower only needs to make one monthly payment