Investor funds are also a viable source of equity injection. However, they often come with 𝗠𝗮𝗻𝗮𝗴𝗲𝗺𝗲𝗻𝘁 𝗦𝗲𝗿𝘃𝗶𝗰𝗲𝘀 𝗔𝗴𝗿𝗲𝗲𝗺𝗲𝗻𝘁𝘀 (𝗠𝗦𝗔) that include specific conditions the borrower must meet. Most often, some conditions are not eligible per the SBA SOP.

These conditions must not impose additional repayment obligations or reduce the business's cash flow in ways that conflict with SBA loan requirements.

Not all banks have the same risk appetite and credit policies. If you're heading toward an LOI—Letter of Intent and need guidance navigating these complex funding source waters, let's talk.