Recommendations for SBA 7a Lenders allowing 10% equity

by a searcher from University of Southern California

4 years ago

Hey Community of searchers and lenders - We're looking for recommendations for lenders who can lend SBA 7a loans covering a 90% loan to value ratio. 

We're self funded searchers close to signing an LOI with a company selling for 3-4x at a ~5m purchase price and the LOI doesn't have a seller note included. Clearly given the dip in the stock market has made us less willing to liquidate more of our funds to fund a 80% loan to value ratio and we've done the calculations and the company can support a 90% loan to value.

Searchers - Can you share any banks which have completed a 90% LTV funding, which seems to be the minimum threshold for SBA given the requirement for the new owners to bring 10% equity? Super appreciative for any and all recommendations

Lenders - Can you please reach out to us --@----.com  if you can confidently underwrite a loan with a 90% LTV that meets all other requirements such as the interest coverage ratios.

Thanks all!

3 likes
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3 comments

intermediary from Indiana University at Bloomington

Live Oak, one of the largest SBA only lenders, is a very good SBA lender with very experienced people. John Randall --@----.com is a great contact as is Lisa. The SBA, within the next few days, will be waiving all fees if you don't already have your PLP number (usually a few weeks prior to closing) as well as it is being considered to give the banks a 90% guarantee, which should allow them to take a little more risk. So a good time to buy a company and get a loan. Most other banks will do 90% loans but may have more handcuffs on you.

4 years ago | like reply | 1 like

searcher from United States Military Academy

I second Bob - Live Oak would be my first stop.

4 years ago | like reply | 1 like

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