I’ve heard the same from a different lender. I’m starting underwriting now with a planned close for early Feb (fingers crossed) and the bank is not concerned. We shall see!

I think your options boil down to this: AR lending - this is not probably any good for an acquisition. One it won't be enough, two you may not negotiate in a way that gets you the outstanding account receivables. Conventional loans - this depends on the deal and the acquirer. Deals certainly get done this way but they may be with terms that are not as good as SBA in which case you want to look closely at your ability to refinance. And number two, they may not be available at all because without the government's guarantee there are some deals that the conventional lender wouldn't take. Equity partners - this is obviously dilutive, but industries exist, and they may want to help you fund the deal. It would change the economics a little bit because you would only be getting carry for your intent to operate and possibly you could approach it as an independent sponsor seek management fees for making the deal happen. It still could be lucrative, and it reduces your overall obligation and personal guarantee. It may be a different or higher bar to convince equity partners that you are the right person to run it. But this is very viable, and I suggest you get familiar with what independent sponsor market terms generally look like. Private debt lenders - these are people with capital that prefer to make loans rather than pay for equity. Generally the terms are going to be worse than an SBA loan, but they also may offer the opportunity to get deals done with a speed that SBA can't match or with a set of criteria that SBA will not accept. There used to be a company called boopos That was aimed at providing acquisition funding for small SaaS deals that most SBA lenders don't really like. I think they got bought by someone else, but the point is they exist. Again you want to get clear on your ability to refinance in order to get better terms as options open up to you. Those options could open up simply because the government reopened and the business you bought is fully SBA friendly, or they could open up because you stabilized a business or grow it to the point where what was an acquisition multiple on future revenue for saas has justified itself with real growth and now you can make a cash flow loan on better terms instead of a speculative forward-looking loan. I'm not endorsing these guys that I'm going to link below, I just did a random Google search to find some material out in the world that talks about private credit in relation to acquisitions. redacted