Can anyone recommend an SBA lender that can provide an express loan / LOC?

by a searcher from Stevens Institute of Technology

2 years ago

Hello everyone,

I funded an acquisition without 7(a) and I'm exploring an express loan or LOC. Many banks don't underwrite stand alone LOCs outside of the 7a program, so any pointers would be sincerely appreciated!

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lender from California State University, Sacramento - College of Business Administration

It’s usually pretty tough for a lender to come in and just provide a line of credit if they’re not providing the acquisition debt. There is still all of the transition risk without the control. You mention that you didn’t finance with an SBA loan so I’m assuming all seller debt? Your best bet is probably a local community bank that will appreciate the deposits and might be open to an under secured LOC.

2 years ago | like reply | 0 likes

lender from University of Missouri - Columbia

The SBA 7A lender you worked with would be the main person who could do this. Trying to do this with another bank will be really difficult. The AR and inventory are now collateral for the 7A loan so getting a line now will be difficult. The 7A lender you worked with could have done this at close so hopefully they would accommodate your request now. Other banks would be in last position on everything so it will be difficult to get that approved.

2 years ago | like reply | 0 likes

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