Hey Search funder family

We are making some existing changes to our underwriting and I wanted to share incase someone need some financing options. I corrected this post on 1/30/2024 to give more details on larger deals and pari-passu.

-We are comfortable with a 5MM goodwill deal and in most case we stick to a 1.15 DCR for deals under 2.5MM, if a deal is larger we do look for a stronger debt coverage of at least 1.40 and hopeful the guarantors have good post closing liquidity. -We are not stress-testing our deals aggressively, which means more deals will be approved by underwriting. -We are looking to do 25-year terms for CRE with no equity requirement for businesses expanding to a large Facility/Office -We will start getting into ESOP SBA deals, a niche aspect of SBA lending. -We are comfortable with deals that require Pari–Passu. Of course the deals have to cash flow the debt since it may not be a standby. Tax returns with adjustments should cash flow both the SBA debt and the traditional loan -We will provide 100% financing on a business acquisition if the business purchased will have the same NAICS code, within the same geography, which is subjective, and has the same ownership structure.

I appreciate the continued partnership and if want more details please reach out.