Closing an SBA-backed deal with an institutional partner

March 12, 2026

by a searcher from Columbia University in New York, NY, USA

We are working our way through a closing, and have a fantastic institutional equity partner that we're working with. Changes to the SBA rules and their interpretation w/r/t LP-GP structures seem to be confusing many of the people around our table. Have any here closed an SBA deal since the rules changed alongside institutional equity? I'd love to speak if you'd be up for that.

Reply by a searcher
from Southern Illinois University at Edwardsville in Laramie, WY, USA

Second to ^redacted‌ This is very painful. There may be 50+ LPs. They don't want the headache. If one rebels then the whole pool, is no good. I had to have my institutional investor come in as working capital only and do some deal restructuring to make it happen.

Reply by a lender
from Touro University in Houston, TX, USA

Sounds like you can benefit from some counsel with extensive SBA experience. Some solid options: @redacted‌‌

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