SBA loan with 2 investors?

investor profile

July 11, 2022

by an investor from University of Michigan - Ann Arbor in Chicago, IL, USA

Is it possible to use an SBA loan if there are two buy side investors (searcher + one investor)? Appreciate any recommendations or connections (assuming it’s possible to structure the deal like this).

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Reply by a lender
from University of Wisconsin in Madison, WI, USA
Yes - it's possible. I've seen this done plenty of times before. Please feel welcome to drop a time on my calendar. I'd be glad to answer any questions specific to this.

Thanks,

Matthias Smith
Owner / Founder
Pioneer Capital Advisory LLC
Phone: ###-###-####
Email: redacted style='text-decoration:underline;' target='_blank' href='https://www.pioneercapitaladvisory.com/'>https://www.pioneercapitaladvisory.com/
Calendar: https://calendly.com/pioneercapitaladvisory/general-networking-call-or-meet-and-greet
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Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA
Very common. Keep in mind that with an SBA 7A loan that anyone that owns 20% or more of the business would be required to sign a personal guarantee, which could also end up exposing them to the pledge of personal assets if there are not sufficient business assets to fully secure the loan. However, we have done deals where the investor puts in a majority or all of the capital with less than a 20% ownership and another partner takes on management and the guarantee risk. I am more than happy to discuss specifics at any time at redacted
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