LOANS FOR COVID-IMPACTED INDUSTRIES
I've been looking at businesses in a COVID-impacted spaces (businesses currently closed), where a deal would be structured to close only once the business can re-open with at least 50% occupancy. I've been pinging lenders to see what kind of financing I can get, but it seems like folks are a hard no on business loans (as opposed to real estate loans) that are COVID-impacted.
One lender told me that their SBA rep won't approve anything COVID-impacted right now, and in-house they are super focused on just shoring up cash as their existing loans request deferrals.
I've been surprised at the hard line folks are taking on this given I'm looking to raise only ~1x normalized cash flow as senior debt, no other debt or seller note in the structure. Curious to hear if others have seen lenders step up to the plate on these kinds of deals, or if there are alternative lending sources I should consider.