Multiple Acquisitions using SBA

searcher profile

January 15, 2021

by a searcher from Stanford University - Graduate School of Business in 701 E Bay St, Charleston, SC 29403, USA

I would like to acquire a number of businesses over the coming years - does anyone know if you can use SBA to purchase multiple businesses using the same personal collateral?

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commentor profile
Reply by a searcher
in Washington, DC, USA
The maximum 7a dry powder you can use is $5M at any time. For example if your current acquisition has $3M of SBA 7a Debt outstanding, you would only be allowed to use $2M of SBA 7a debt on your next acquisition. However, depending on the type of business and location, there are other types of government loans you can use to complete an acquisition.
commentor profile
Reply by a lender
from University of Missouri in St. Louis, MO, USA
you can do multiple SBA loans. If you have to pledge personal collateral (i.e. your home) you would probably just have to pledge it on the first one. if there is not equity in the home(s) then you don't have to pledge any personal assets. Email me to discuss and I can be more specific redacted
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