$4.8M SBA LOAN IN FINAL STAGES REQUIRES STRONGER BORROWER DUE TO COVID
Acquiring a print/packaging company in Los Angeles (see Deals for details).
We are in final stages of an SBA loan after 12 months of work.
Bank advised last week that loan is acceptable and they are satisfied with all aspects but due to covid a slightly stronger borrower is now required to complete. The bank were explicit that this lend would have proceeded but for covid.
I am not yet a US citizen so my assets are not taken into account. Bank have advised that including an additional US citizen/PR co-borrower with $300K+ assets and solid credit will suffice to complete the lend.
Co-borrower would provide a PG but the transaction is over 90% collateralized by industrial real estate and machinery assets.
Very robust business in defensive sector has continued to grow through lockdown, operating for 23 years, founders are owners and are continuing 12 months post-close.
Borrower may participate in equity and/or remuneration depending on involvement in operations.