Businesses with contractor licenses must have a licensed RMO (Responsible Managing Officer) or RME (Responsible Managing Employee). The RMO or RME is essentially the qualifier for the company’s contractor license.
SBA lenders have specific requirements for construction or contractor acquisition loans. These requirements vary with each lender regarding the RMO requirements and buyer qualifications. SBA lenders generally require buyers to have construction-related experience and be capable of obtaining the required contactor license.
SBA Lender Requirements for Buyers Acquiring Construction & Contractor Businesses
Some SBA lenders require the buyer to have their contractor license or pass the test prior to closing while other lenders will allow the seller to act as the RMO for up to one year after closing. In some instances, lenders may allow the buyer to have an RMO with a small percentage of equity (stock) in the business for longer than one year.
Check with your SBA lender for their specific licensing requirements.
SBA lenders will not accept an employee RME. The license qualifier must be either an RMO with some equity or the Seller for no longer than one year.
CSLB licensing requirements are shown in the links below
CSLB Qualifying Experience for the Contractor License Examination
Acceptable Supporting Experience Documentation
htps://www.cslb.ca.gov/AcceptableDocuments
CSLB Processing Times
https://www.cslb.ca.gov/OnlineServices/ProcessingTimes/ProcessingTimes.aspx
CSLB Laws & Regulations