There's a few threads if use the search box in top left on Searchfunder and search on "non-SBA lenders."

I'd be curious what others say but my sense from past readings and talking to folks:
-2m+ EBIDTA businesses there's a range of options - lots of the banks that active in search community do these deals without using SBA, SBIC lenders, etc
-Sub-2m EBIDTA deals it can be hard for debt to finance an acquisition other than SBA.
-Sub 2M EBIDTA and debt related to running a business (not finance an acquisition), there's a lot of options.

Following

I’m curious about this as well. I’m focused on sub $2m EBITDA businesses and exploring nonSBA options.

There are several lenders that do non-SBA loans, especially if the core business has unsecured assets you can collateralize.. Cash flow loans can be harder to find but are out there. As just one example: Liveoak claims to do conventional and non-SBA loans for companies with $1.3mm in EBITDA and above. ^[redacted]‌ might be a good person to chat with if your target exceeds that threshold (not sure if $1m relates to the equitable interest in earnings being financed or the gross earnings of the borrower).

I know Live Oak does non-SBA even though they're mostly known for SBA. I'd start with them and see what you get.
5-7 year note, interest a little higher than government guaranteed. It's not going to be as good as SBA, but if it's your only option, it should be workable.

There are options out there for non-sba debt on buy-outs. It all is going to depend on the size of the transaction and then what type of collateral and cash flow exists. We have been successful on doing some partner buy-outs with more traditional bank loans even without being fully collateralized if the deal makes economic sense and the business is doing well. We have over 350 funding partners we place debt with, so if you need assistance looking at options we can bring a lot of them to the table. Feel free to reach out to me. Thank you.

reach out directly at [redacted] We're running about 50%-50% SBA/Conventional for our Searchfund lending niche. My feedback will be very deal specific.

Tagging a few lenders that may be able to comment here: ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌

Agree with ^[redacted]‌ and ^[redacted]‌. However, we do look at each acquisition case by case, industry, etc. Happy to chat: [redacted]

I have done such transactions as an M&A Intermediary. I will make a bold statement. Partial buyout (majority or minority) with leveraging Target's assets is not possible at all, SBA or non-SBA lender. For starters, banks lend against the assets and/or cash flow. They do not lend against private company shares. If you buy partial shares, how does the debt get on company books? If somehow the bank lends you against the shares, the target has no obligation to pay the interest or the principal on non-company debt, How will you then service the debt? As I said, I have found ways to do such transactions. Happy to help.
I would love to hear opposite view, especially from someone I know and respect, Lisa Forrest.

We do these types of transactions pretty regularly. Message me so I can learn more.

Following

It depends on what type of leverage and collateral is being considered. Are there accounts receivable and inventory?

Elliot, is the business's HQ located in a New Markets Tax Credit Zone in the U.S? Put the address in this site: https://www.policymap.com/widget?sid=117&wkey=4D2AFE10710D41918F180775F0A353F2

If the HQ is in a yellow or red zone, let's get in touch. I'm at [redacted]

I'm with a family office that would do a non-SBA senior term loan for a sub $2 million asset light business. Send me an email and happy to chat: [redacted]

I used a private investor group that invests in deals like this to fund a buyout that my wife and I led together. Terms were 12% non-amortizing plus warrants, which was expensive but worked well for us. Happy to put you in touch with them.

Christian I would be interested in obtaining further information, can you pm me at [redacted]

On questions of feasibility of debt financing, the focus should be on security/collateral. If there is valuable collateral to secure the debt, SBA isn't needed and you'll be able to find a lender that will do this. Yes, the minority partner is going to have to agree to take on the debt along with acquiring firm, but that is usually a necessary part of this type of arrangement. Leveraging the target's assets is fair game - not everyone is going to agree to that, but that's often necessary to get a deal across the finish line. Others may disagree, but without good collateral non-SBA debt financing for small business is like a four leaf clover... you might find it, you might not, but will spend a ton a time looking for it ;-)

Following

Don't exclude direct lenders. They can be supportive, situation and industry dependent.

Where is the company located, what industry is it in?

We have a program for smaller conventional acquisitions. With EBITDA below $1.75 million, we require a personal guaranty. You can expect a 7 year amortization and interest rate around 5% currently.

We structure non-SBA facilities for companies of that size. Feel free to email me for more info at [redacted]