SBA LOAN ON CASH + EQUITY DEAL
We run a small for now CPG conglomerate. We have the opportunity to acquire a brand for 1/3 cash + 2/3 parent company stock. The EBITDA of the target would support an SBA loan of ~1/2 of the acquisition price at 5x adjusted EBITDA (so working capital to spare).
Can we use an SBA loan to finance the cash portion of the acquisition in these circumstances?
EBITDA has been fairly consistent for 18, 19, 20. Is that a long enough record to get a non-SBA bank loan?