SBA loan or direct bank financing - 10M Rev, 1.1M EBITDA

February 07, 2025

by an intermediary from Georgia Institute of Technology in Reston, VA, USA

Conducting due diligence on acquisition of 18 chiro clincs, with 10M Rev and 1.1 EBITDA.
My partner is a Doctor of Chiro and owns a similar franchise, so very familiar with the operations.

What would be the best financing vehicle - SBA loan or go with direct bank financing.

I have heard horror stories of exceptionally long approval times with SBA but in the current market a variable rate may make sense, as opposed to a fixed rate from a bank.

Thoughts?

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Reply by a lender
from University of Southern California in Los Angeles, CA, USA

Hi redacted‌ - SBA horror stories are overblown. In fact, for a business of this size, the SBA is pretty much the only real game in town. The key is working with the right lender to ensure a smooth process. As an SBA loan broker, I work with all the major SBA lenders. The bank pays us after your loan closes, so this is a 100% free service for you. You can reach me here or directly at redacted You can also schedule a meeting with me here: https://cal.com/ishan-jetley-3d73m8/30min. Looking forward to chatting!

Reply by a lender
from University of Southern California in Los Angeles, CA, USA

Depends on the completion of the package. If you can put together a great package and provide lenders with a complete set of documents (all seller financials, tax returns, personal tax returns, the PFS, 1919) while running a tight lender outreach process, you can expect multiple term sheets within 7 days and a closing timeline of###-###-#### days post term sheet signing. Some lenders are slower and some are faster. Each lender has deals that they love and their own underwriting, approval and funding timelines. But the efficient lenders can now fund under 60 days easily. Look forward to chatting in more detail if you are up for it. Do you already have a signed LOI?

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