I know the SBA is the preferred lending program for this cohort but given that the SOP might change the situation on equity rolls. I am curious if anyone has curated a list of LMM lenders that normally do $5-15mm EV deals with equity rolls.
It is more a PE lender than what I have seen people discuss here but trying to save myself the effort of manually calling a bunch of banks.
If anyone knows someone or has a list they are willing to share, that would be great! Thank you!
Does anyone have a list of banks that allow equity rolls? above SBA limits
by a searcher from University of Massachusetts Amherst - Isenberg School of Management
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Although the SBA guarantee requirement might be changing for sellers (that is still be negotiated), just for clarity the SBA does not allow a traditional seller roll-over currently. In essence under the partial acquisition rules you need to buy into the existing company and that company is the borrower on the loan, and the seller retains a portion of the equity in the original company. Seller roll-overs are not allowed. They are seen as full business acquisitions and the seller cannot buy back in if you do a full business acquisition. I hope this helps to clarify.