7a Refi

Member resources:

Frequent asked questions:

What is Searchfunder.com?

Searchfunder.com is an online community of searchers, investors, lenders, brokers and other professionals. Over 80% of those involved in searchfunds maintain a Searchfunder account to help them network, hire, and mentor others.

What are the benefits of membership?

In addition to accessing the most active online network of business buyers, Searchfunder licenses research that is simply not cost effective for individuals. Access over 15,000 industry reports and 50,000 transaction financials. You also get monthly credits for contact information for your company sourcing campaign with the option to purchase more at drastically discounted rates. Searchfunder has pre-purchased access from these data providers in order to empower individual buyers and to help searchers level the playing field versus private equity.

Do you have deals?

While we are primarily a buy-side network, we do have hundreds of brokers that regularly post deals to the community.

Can I find an internship on Searchfunder?

Absolutely! We have the industry's largest intern job board. If you are considering a search, the first step is to help another business buyer so you can hit the ground running.

What does it cost?

Searchfunder is a subscription service. We offer flexible monthly, annual and lifetime memberships.

Monthly

$79 / month

Annual

$19 / month

Lifetime

$432 / once

Those who maintain an account with us for over 4 continuous years are permanently added to the community without the need for a membership.

Do I need an MBA to join?

While a large number of our members come from dedicated programs at Harvard Business School, Stanford GSB, Chicago Booth, and other top programs, searching is no longer reserved for the elite. With the current abundance of dry powder in private equity, and an increasing number of business owners reaching retirement age, good deals rarely go unfunded.

Post a question, deal, job, etc...

Make a post...

Complete registration to post.

by a searcher from Babson College - F.W. Olin Graduate School
in Boston, MA, USA

8yrs ago

7a Refi

Does anyone have any data or info on refinancing out of 7a loans? Pre-payment penalty aside, I'm trying to research what other restrictions/covenants/roadblocks typically exist if we try to refi out of a 7a, 12-36 months into a loan. Any feedback would be helpful, thank you!

6 Likes

267 Views

reply by a searcher 8yrs ago
from Harvard University in 1970 Walton Dr, Burlington, WA 98233, USA

I'm happy to send you my 7a loan agreements and you can parse through on your own, but my understanding is that my loan has no prepayment or restrictions on refinancing.

reply by a lender 8yrs ago
in Yorba Linda, CA, USA

From the SBA/lender side, the only restriction is that you generally (there are a few rare exceptions) cannot refinance an SBA 7(a) loan with another SBA 7(a) loan. Since you are confined to a conventional loan, it's best to compare the terms. In most cases, you will be better off keeping the SBA loan since it gives you a 10 year amortization and term and your interest rate is 7% or lower. Also, don't forget to factor in the SBA guaranty fee you paid at closing as an additional "lost" cost of refinancing. Many conventional loans will only offer a 5 year amortization. If you can find better terms (or the cash flow of the business can easily support a more aggressive amortization schedule) then the SBA lender can be paid off in full at any time without penalty. In my experience, the terms and cost of the SBA 7(a) loan are almost always better than the alternatives.