Miracle (I mean Madison) Auto Body

I've been in this business long enough to know when a deal is circling the drain. And honestly, I thought this one was done for.

The First Go-Round

Keith had first reached out in spring 2024 with what seemed like a solid opportunity. Madison Auto Body was an established shop with decent cash flow, and Keith had the experience and passion to make it work. But as we dug deeper into the financials, the numbers just weren't adding up the way we needed them to.

The seller, George, was asking for one amount, but when we ran the business through our SBA underwriting process, we could only justify a loan amount around 60% of the asking price. The balance sheet showed a decent amount of equipment, but it had all been depreciated down to zero. Without current fair market values, our hands were tied.

"Can we order an equipment appraisal?" Keith asked. I explained it was possible, but it would be an out-of-pocket expense with no guarantee equipment financing would get us anything more than an SBA 7a acquistion loan.

We went back and forth on deal structure. Could Keith handle a higher down payment? Would the seller consider seller financing for the difference? Maybe we could restructure this as two separate loans with different terms?

But as spring turned to summer, momentum faded. The equipment only idea fizzled out. Seller's accountant was slow getting updated balance sheets. Keith was patient, but I could hear the frustration creeping into his voice during our calls. He was ready to make this happen. Already running a different shop nearby as well as an insurance agency, he was ready to get out on his own. But the seller wouldn't budge.

By fall 2024, the file had quietly moved to my "maybe someday" folder.

Back From The Dead

Then, in early 2025, I got a message from Keith. George (the seller) was tired. Ready to retire. And while he still thought his business was worth much more, he was willing to work with us to make it happen. So I opened Keith's file back up, refreshed a couple of his application forms, requested a new item or two, then went and presented it back to the lender that had looked at it the first time.

I filled him in on where we'd left things. The valuation issues. The stalled appraisal process. How we'd basically hit a dead end.

"Let me take a fresh look at this," the lender said. "The SBA is changing some rules effective June 1st that might make deals like this tougher to structure. If we're going to make this work, we need to move fast."

SOP 50 10 7.1 was phasing out, so we needed to be sure our SBA approval was in place to keep this one eligible.

Racing Against Time

When I called Keith back in Late April 2025, I could hear the disbelief in his voice.

"Really? You think we can make this work after all this time?"

We had found a path forward. We could structure the deal with a significant seller note component - George would carry financing for a portion of the purchase price with a two-year full standby period, meaning no payments for the first 24 months. This gave Keith breathing room to establish cash flow and build the business before taking on that additional debt service.

The percentage breakdown was creative but SBA-compliant. Keith would put down some of his own cash, we'd provide SBA financing for the majority of the purchase, and George's seller note would bridge the gap.

But we had a hard deadline: get SBA approval before June 1, 2025, when new SBA regulations would take effect and kill deals structured like this one.

The Final Sprint

What followed was an unecesarily drawn out closing processes I, but now we're here. Between April and August, we had to coordinate:

• Updated financial statements and tax returns
• Connecticut state tax clearance certificates (which required Keith, not George, to make the request)
• Revised purchase agreements with new closing dates
• Equipment lists and inventory counts
• Seller subordination agreements
• Multiple attorneys across different states
• Site visits and final underwriting approvals

Every few weeks, the closing date would slip. First it was June, then July, then August 15th, then August 27th, and finally August 29th.

There were moments when I wondered if this deal was cursed. Documents would need to be re-executed because of date errors. The consulting agreement had to be completely rewritten when we discovered it violated SBA regulations about seller involvement after the first year.

Keith stayed remarkably calm through it all. Every time I called with another delay or document request, he'd simply say, "Whatever it takes, Zach. Let's get it done."

Closing Day

On the morning of August 29, 2025, nearly 16 months after our first conversation about Madison Auto Body, we finally made it happen.

Keith became the proud owner of an established auto body shop with solid cash flow, experienced employees, and room for growth. George got his retirement payout and transitioned out of the business he'd built over decades. The seller financing gave both parties flexibility - Keith got manageable debt service without much cash outlay, and George secured steady income for the next several years.

But the real victory wasn't financial. It was about persistence, creativity, and refusing to give up on a deal that made sense for everyone involved.

The Lesson

This story reminded me why I love what we do. Sometimes the best deals aren't the easy ones that close in 30 days. Sometimes they're the ones that test everyone's resolve, force creative solutions, and require every party to dig a little deeper.

Keith could have walked away a dozen times during this process. George could have found another buyer. The lender could have written off the deal as too complicated.

But they didn't. And because they didn't, a hardworking entrepreneur is now running his own successful business, a retiring owner got fair value for his life's work, and SBA lending did exactly what it's supposed to do - help good people build the American dream.

When deals like this close, it reminds you why patience and persistence matter more than perfect timing. Sometimes the longest journeys lead to the most rewarding destinations.

Keith's story wasn't just about buying a business. It was about believing in the process, trusting the team around you, and never giving up on something you know is right.

Now that's a loan story worth telling.

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