$1.5mm EBITDA Mezz Lenders

June 01, 2024

by an investor in New York, NY, USA

We have a $1.5mm EBITDA business under LOI in Massachusetts with attractive recurring dynamics. Looking for non-recourse lending solutions for a mezzanine or senior stretch / unitranche structure that will get us to 75%+ LTV.

We would consider any community/ regional programs with lower costs of capital.

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Reply by a searcher
from Pennsylvania State University in Brookhaven, NY 11719, USA

I've found that attracting non recourse sophisticated structured capital or private credit is a bit challenging for these smaller deals. You really need to get north of $2.5M in EBIDTA. You can always hunt for a local player with in SBIC fund. Sometimes they have allocations for smaller deals like this.

Otherwise, yes, SBA + Seller Financing is going to be the best way to do it. There are creative things you can do to limit the PG. Also know that rollover equity is more challenging now with the new SBA regulations, so be ready to be creative on structure.

Reply by a professional
from University of Massachusetts Amherst in Boston, MA, USA

Hi, we help ETA entrepreneurs secure funding for their searches. We can potentially help you out with funding. Could you fill up this form: https://form.jotform.com/ridethewave/funding-ally, and please text###-###-#### or email redacted and I can see if we can help you out.

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