Information may change at anytime without notice. Exceptions are sometimes made on a case-by-case basis.


The SBA 7 (a) program has been the primary financing option for advisors. Dozens of SBA lenders have written about $2 Billion in loans to financial and insurance advisors since 2010.


  • 10 year term/amortization.
  • No prepayment penalty.
  • No minimum advisor experience level.
  • Allows for a prior Bankruptcy in certain cases.
  • Low credit score requirement.
  • Up to 100% financing.
  • Lower revenue producers can qualify for higher loan amounts than Tri-Party and Conventional programs.


  • SBA Lenders overlay their own criteria on top of the SBA program criteria. This makes it difficult for advisors to distinguish which criteria is the SBA’s and which is the SBA lender’s additional requirements. This results in some advisors who are qualified for the SBA program may not qualify with a specific SBA lender. (This is one reason having an open architecture of lenders and corresponding qualifying criteria allows us to match our loan package analysis with multiple SBA lenders to maximize the probability that if you technically passed but are cutting it close in meeting the SBA program’s criteria we have the stable of lenders to get it done.)
  • Seller can’t stay on more than 12 months and there is a 2 year waiting period before seller can receive seller note payments.
  • Only 100% equity buyouts allowed. No partial equity buyouts.
  • Lien on property with 25% equity or more (many SBA lenders will place lien under 25% as well). If you sell your house and buy another, they will transfer the lien. If you don’t buy another house then the equity from the sale are applied to your loan.


The Tri-Party agreement is established between the advisor, the lender and the broker dealer or firm.

The essence of a Tri-Party is that the advisor sets up a personal joint bank account with the lender where they maintain a two-month loan payment balance reserve and the loan payment is deducted from the advisor’s operating account by ACH each month and deposited into their account with the Tri-Party lender, who then sweeps out. Each month, the advisor is required to submit an AUM and GDC statement to the lender.

In cases where the broker dealer or firm has over $10 billion in assets they do not guarantee the loan but smaller firms may be required to provide additional assurances.


  • Up to $10,000,000 limit, twice as high as the SBA’s limit.
  • No personal property taken as collateral.
  • Fixed rates.
  • 10 year amortization.
  • Lowest interest rate and fastest closing option
  • More loan purpose and structure flexibility.
  • Seller can stay on after sale for longer than 12 months.


  • The inconvenience of providing monthly AUM and GDC report to lender each month.
  • Ongoing covenant to maintain a 1.3 DSCR.
  • Limited accessibility of broker dealer and firms offering the Tri-Party option.
  • Minimum 10 years licensed and 5 years as an independent advisor
  • No prepayment allowed in first 12 months and then 3% year two, 2% year three, 1% year four.
  • No prepayment allowed in first 12 months and then 3% year two, 2% year three, 1% year four.

Broker Dealer Current Availability:

  • Ameriprise Financial
  • Cetera
  • Kestra

Firm Current Availability:

  • We are adding firms weekly who are utilizing the Tri- Party to help their advisors access more desirable loan options than the SBA allows for.
  • The Tri-Party provides firms with a significant recruiting value proposition.


The Conventional loan is a non-SBA option with criteria unencumbered by SBA rules and regulations. A Tri-Party agreement is not required for conventional program.


  • Up to a $20,000,000 limit, 4X the SBA limit.
  • Non-SBA option when Tri-Party is not available
  • No personal property taken as collateral.
  • Fixed rates
  • More flexible term options
  • Competitive interest rate
  • More loan purpose and structure flexibility
  • Seller can stay on after sale for longer than 12 months


  • Doesn’t provide straight working capital loans, only in conjunction with another loan purpose like an acquisition loan.
  • Ongoing covenant to maintain a 1.3 DSCR.
  • Allowable loan types and structures more flexible than SBA but more narrow than Tri-Party loans
  • Prefers 5 years minimum experience as Financial Advisor.
  • 2% prepayment penalty for life of loan if refinanced with another lender.