Institutional funding and SBA lending

Member resources:

Frequent asked questions:

What is Searchfunder.com?

Searchfunder.com is an online community of searchers, investors, lenders, brokers and other professionals. Over 80% of those involved in searchfunds maintain a Searchfunder account to help them network, hire, and mentor others.

What are the benefits of membership?

In addition to accessing the most active online network of business buyers, Searchfunder licenses research that is simply not cost effective for individuals. Access over 15,000 industry reports and 50,000 transaction financials. You also get monthly credits for contact information for your company sourcing campaign with the option to purchase more at drastically discounted rates. Searchfunder has pre-purchased access from these data providers in order to empower individual buyers and to help searchers level the playing field versus private equity.

Do you have deals?

While we are primarily a buy-side network, we do have hundreds of brokers that regularly post deals to the community.

Can I find an internship on Searchfunder?

Absolutely! We have the industry's largest intern job board. If you are considering a search, the first step is to help another business buyer so you can hit the ground running.

What does it cost?

Searchfunder is a subscription service. We offer flexible monthly, annual and lifetime memberships.

Monthly

$79 / month

Annual

$19 / month

Lifetime

$432 / once

Those who maintain an account with us for over 4 continuous years are permanently added to the community without the need for a membership.

Do I need an MBA to join?

While a large number of our members come from dedicated programs at Harvard Business School, Stanford GSB, Chicago Booth, and other top programs, searching is no longer reserved for the elite. With the current abundance of dry powder in private equity, and an increasing number of business owners reaching retirement age, good deals rarely go unfunded.

Post a question, deal, job, etc...

Make a post...

Complete registration to post.

by an intermediary
in New York, NY, USA

3yrs ago

Institutional funding and SBA lending

Hi does anyone know how to navigate SBA funding while having institutional investor(s) contribute part of equity funding?
If anyone has done this before, would be great to hear about the experience.

Thanks

0 Likes

143 Views

reply by a lender 3yrs ago
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA

I would be more than happy to have a discussion about it. You can reach me directly at redacted For SBA, anyone who has a 20% or greater ownership interest is required to guarantee the loan. However, anyone with under a 20% ownership is not required to guarantee the loan. The amount of equity coming into the transaction does not need to match the ownership interest in the operating company. Someone can bring 50% of the equity but only have a 10% ownership interest. Happy to discuss in more detail at any time.

reply by an investor 3yrs ago
from University of California, Berkeley in San Francisco Bay Area, CA, USA

The issue is the personal guarantee the SBA requires from everyone owning more than 20%. Institutional investors need control rights and typically want to own more than 20%, however they will not sign a personal guarantee. That’s why SBA debt does not work for traditional search and most independent sponsor deals.