SBA 7a Alternative (~700K EBITDA Add-On)

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August 25, 2025

by a searcher from University of California, Los Angeles - UCLA Anderson School of Management in Los Angeles, CA, USA

Hey all. We’re evaluating debt financing options for an add-on (~$700K EBITDA) to an ABA therapy platform. The seller intends to roll equity but wants to avoid a personal guarantee (requirement under the new SBA rules). My understanding is that deals under $2M EBITDA are out of scope for private credit, but has anyone had success in finding a non-SBA, non-conventional lending partner for a deal of this size? Any pointers would be greatly appreciated.
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Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA
We do work with conventional bank lenders that might consider a deal of this size depending on what the equity stack looks like. Assuming a normalized down payment, if the total debt is below $2 to $3 million there will be limited non-bank lending options. You can reach me here or directly at redacted if you would like to discuss.
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Reply by a searcher
from University of California, Santa Barbara in San Jose, CA, USA
I am in MH/SUD and we are growing with long term plans, and ABA is not my cup of tea but please do tell more, I worked in LA area from###-###-#### and still in contact with many there, maybe can find something that may be useful to you
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