Refinance Acquisition Bridge Loan with SBA Loan

Member resources:

Frequent asked questions:

What is Searchfunder.com?

Searchfunder.com is an online community of searchers, investors, lenders, brokers and other professionals. Over 80% of those involved in searchfunds maintain a Searchfunder account to help them network, hire, and mentor others.

What are the benefits of membership?

In addition to accessing the most active online network of business buyers, Searchfunder licenses research that is simply not cost effective for individuals. Access over 15,000 industry reports and 50,000 transaction financials. You also get monthly credits for contact information for your company sourcing campaign with the option to purchase more at drastically discounted rates. Searchfunder has pre-purchased access from these data providers in order to empower individual buyers and to help searchers level the playing field versus private equity.

Do you have deals?

While we are primarily a buy-side network, we do have hundreds of brokers that regularly post deals to the community.

Can I find an internship on Searchfunder?

Absolutely! We have the industry's largest intern job board. If you are considering a search, the first step is to help another business buyer so you can hit the ground running.

What does it cost?

Searchfunder is a subscription service. We offer flexible monthly, annual and lifetime memberships.

Monthly

$79 / month

Annual

$19 / month

Lifetime

$432 / once

Those who maintain an account with us for over 4 continuous years are permanently added to the community without the need for a membership.

Do I need an MBA to join?

While a large number of our members come from dedicated programs at Harvard Business School, Stanford GSB, Chicago Booth, and other top programs, searching is no longer reserved for the elite. With the current abundance of dry powder in private equity, and an increasing number of business owners reaching retirement age, good deals rarely go unfunded.

Post a question, deal, job, etc...

Make a post...

Complete registration to post.

by an investor from University of Pennsylvania - The Wharton School
in New York, NY, USA

1yr ago

Refinance Acquisition Bridge Loan with SBA Loan

Does anyone have any insight or experience shares on refinancing a bridge loan with a SBA loan. This would be a true third-party loan and not a seller note. Am interested in this approach as it would speed up the closing of a pending acquisition while at the same time providing a route to the lowest possible cost financing. This approach appears to be possible if you can demonstrate a 10% improvement in debt payments, however, I'm concerned I might run into other roadblocks like a minimum ownership period before the loan can be refinanced.

Am aware that the rules have changed on this somewhat recently per the below.

redacted
redacted

Am also aware of the many general SBA restrictions having had a SBA loan on previous acquisition that was exited (located in the U.S., eligible business, personal guaranty, etc.).

Thanks in advance!

0 Likes

108 Views

reply by a lender 1yr ago
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA

I would be happy to connect and talk through it. There is no rule on how quickly you can refinance with an SBA loan. However, the risk is you will get stuck in no-man's-land from an operating standpoint. If you close and wait too long, lenders might want to see how more performance shakes out. In that case you might have to wait a longer time. If you have a lender lined up at the beginning that plans to do the take-out right away, then it can be done right away. Happy to have a conversation and explore options. You can reach me here or directly at redacted

reply by a lender 1yr ago
in Ponte Vedra Beach, FL 32082, USA

^redacted‌ I refinance a lot of bridge loans post acquisition for various purposes with SBA> The 10% improvement ruling has changed and given the nature of a bridge loan it can nearly always qualify for SBA refinance. If the refi is within 12 months it can also still be looked at as an acquisitions in some circumstances versus a refi. My cell isredactedand my email is redacted happy to discuss anytime in more detail to see if we can help.