Non-SBA Financing Options - Deal Size $1mm+ EBITDA

March 03, 2023

by a searcher from Gonzaga University in Spokane, WA, USA

Currently working on a few deals ($1mm+ EBITDA) that are not a great fit for SBA financing. The deals I'm looking at have at least one of the following characteristics:

- Loan size > $5mm
- Owner wants to roll equity
- Owner will continue to play an active roll in the company post-close

What are my options for financing these deals outside of the SBA? Ideally, we'd like to keep our equity at 1x-2x EBITDA and debt at 2x-4x EBITDA. Should I look to SBICs and other mezzanine lenders or are there more conventional options I should pursue first?

Happy to connect with lenders that play in this space.

Reply by a lender
from California State University, Sacramento in Seattle, WA, USA

For SBA if the issue is deal size, DM as we can pair live oak JR conventional in second position behind $5M sba max to bridge size gap. If you need a conventional solution due to ineligible sba factors, our min EBITDA is $3.5M. redacted

Reply by a searcher
from University of Notre Dame in Dublin, OH, USA

Yes, there are commercial banks and mezz lenders who will finance deals like this; though the capital markets open up more at >$2mm EBITDA. Shoot me a note at redacted if you’d like to discuss

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