The Lender classifies each change of ownership (Initial Acquisition by default; Business Expansion, Owner Buyout or ESOP and Cooperative only where the credit memorandum shows the conditions are met) and structures borrowers accordingly: in an Initial Acquisition or Business Expansion the acquirer is Borrower with the target as Co-Borrower where it survives, and an individual buyer and the business are Co-Borrowers jointly and severally on the note; a Business Expansion requires the acquirer to have operated two full fiscal years under current ownership in the same four-digit NAICS group with at least as many full guarantors; in Owner Buyouts, at least one original owner remains and guarantees, buyers not employed 24 months may take under 50% and not become the largest owner (or the Initial Acquisition credit standards apply), and in a partial change every new direct or indirect owner is a Co-Borrower (indirect owners also guarantee) while a selling owner keeping under 20% gives a full guaranty for at least two years after final disbursement, releasable only after 12 consecutive current months. Multi-step partial changes and partial changes in an EPC are not eligible; guaranty percentages otherwise use post-sale ownership; an ESOP seller who stays gives the statutory full guaranty.
The graph holds this control, the 0 it maps to, and the evidence behind each claim, over MCP and REST.