Equity shortfall - $5M loan pre-approved but lender now requires 2x equity

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by a searcher from The University of Auckland - The University of Auckland Business School
in Los Angeles, CA, USA

6yrs ago

Equity shortfall - $5M loan pre-approved but lender now requires 2x equity

$5M SBA 7(a) loan pre-approved but lender now requires 2x equity ($500K) so I have a shortfall

1 Like

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reply by a searcher 6yrs ago
from The University of Auckland in Los Angeles, CA, USA

Thanks Ken, no reason provided as yet, they were happy with $250K plus a full standby $800K seller note so 20% equity in the deal already but they are now seeking more. EBITDA $600K so should be adequate for servicing ($400K servicing cost). Will drop you a note.

reply by a lender 6yrs ago
from University of Pennsylvania in Boca Raton, FL, USA

Perhaps my company, Myriad Growth could help you... check out: redacted call me if interestedredacted