Alternatives to SBA financing for $1-3 million deals

searcher profile

July 10, 2022

by a searcher from Rutgers-The State University of New Jersey-Camden - Rutgers School of Business in Philadelphia, PA, USA

I'm trying to explore the various options for financing LMM/main street sized transactions. It seems the majority of the deals happening at this size are SBA 7a loans with some seller financing component, but what other options are available? What kind of terms do conventional lenders look for and what kind of collateral or guarantees are sought?

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commentor profile
Reply by an investor
from University of Pennsylvania in Washington, DC, USA
In general, there's not a lot of conventional debt options sub $2M EBIDTA - that's why most folks use SBA 7a at the range. You occasionally hear of it happening in a rare or niche case like a SaaS lending platform like Pipe or a super small regional bank that a searcher knows well but at macro-level it's hard sub $2M EBIDTA.
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Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA
Yes, there are other options available outside of SBA 7A financing. I would be more than happy to discuss them at any time. We are a commercial loan brokerage shop with over 350 funding partners. You can reach me directly at redacted
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