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 Lender Requirements for Buyers Acquiring Construction & Contractor Businesses
The SBA recently issued guidance clarifying the licensing requirements for businesses with Contractor Licenses, confirming that the Seller may not act as the RMO (Responsible Managing Officer) or RME (Responsible Managing Employee) of the business post-closing. The SBA also stated the RMO or RME must be a buyer listed on the purchase agreement with equity in the business and be a signer on the loan. SBA lenders cannot accept an employee RME.
Check with your SBA lender for their specific licensing requirements, and see the CSLB Contractor Licensing requirements below for information on qualification requirements and obtaining a contractor license.
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