Looking for a non-SBA loan for an established company

March 19, 2024

by a searcher from Naval Postgraduate School in Boston, MA, USA

Although my deal is eligible for an SBA 7a I would like to explore the world of non-sba commercial loans. I am not trying to avoid the personal guarantee requirement nor I'm against SBA. I am just after ensuring my deal will be financed in the most efficient way.

Project size is about $800,000
Location: Massachusetts
company: 30 yo established business in distribution space

What are some good lender that can help with this?
Thank you!

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Reply by a searcher
from Harvard University in Palm Beach, FL, USA

Bought and sold a restoration business. TPAs can offer more volume, but SLAs are strict and they tend to limit scope of work. They are "good not great" businesses. Pro's: benefits from aging infrastructure, not dependent on macro environment, high margin, fairly asset light (high ROIC), fragmented (for a reason); Con's: working capital intensive, limited benefits to scale across multiple regions other than multiple arb, can be episodic (even if you don't chase storms), unskilled labor, collections can be difficult, jobs vary significantly so it's difficult to create meaningful systems, 24/7 availability can burn out field level employees, etc. Very operationally intensive.

Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA

Happy to have a discussion. We are a Commercial Loan Brokerage Shop with over 500 funding partners. We do conventional and SBA lending. I will tell you for a deal of that size unless it is fully secured by hard business assets, it is going to be hard to find a conventional lender to do the deal. Also the terms on the conventional side will not be anywhere near as aggressive as what the SBA lenders will offer. But I am happy to talk through options and see if we can find you a conventional solution if you ultimateiy decide to go that way and we are confident we can get a conventional deal done. You can reach me here or directly at redacted

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