Here's what happened:
From the very beginning of this process, I had been guided by the advice of Gary, the business broker. He suggested an SBA-sponsored loan from the very start. He let me know that it was important to get all the money for the down payment into my savings account, as the SBA loan approval process must follow federal regulations to prevent money laundering. If money comes in after the loan application has started, then the applicant must provide details, such as bank statements, to show where the money originated.
So, I made sure to have the recommended down payment in the account before applying for the loan. I turned in the loan application paperwork at the beginning of June. After that, it's just a waiting game.
Then, after 5pm on Friday, I received an email from Jessica, my SBA banker, to let me know that, since the money had been deposited into my savings account recently, she would need bank statements for each individual who had provided me some money. She said the federal regulations have recently changed to become even tougher against possible money laundering.
I wrote back to explain that I had crowdsourced a portion of the funds, and to ask, was there an amount below which I wouldn't have to provide the detailed info? I obviously didn't feel comfortable requesting bank statements from family and friends who provided a couple hundred dollars. It seemed ridiculous.
Unfortunately, by that time, it was 6pm on a Friday and Jessica wasn't able to find out the answers to my questions before she left for the weekend.
Geez, I was stressed out. I worried about it for a couple hours before finally calling Aaron, who was on a business trip. He reminded me that all parties involved want this sale to happen, and are going to help me and do what it takes to make the purchase happen smoothly. Then, I watched Dirty Dancing, hugged Lady, and ate some ice cream, and I felt a little calmer.
The good news is, on Monday, I learned that everything was going to be OK! Of course...
Jessica gave me a call on Monday morning and said that she had spoken with her boss, and she said that Jessica was possibly being a little too conservative about the regulations. Apparently, as long as the funds are in the account for 2 months, there is no problem. Jessica and her boss decided that, as long as the funds will have been in the account for the 2 month requirement, as of the closing date, that will suffice. It may cause a slight delay of an additional week or two, but no big deal. PHEW.
On tap for me this week: finalize the Lease Agreement (still negotiating); go back to the OLCC and apply for my liquor license again (turns out, they need a copy of the Lease); and meet with my CPA Kyle about a number of questions.
Love to you all. Amy