SBA loans on higher multiples

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by a searcher
in Fort Collins, CO, USA

1yr ago

SBA loans on higher multiples

Does anyone have any experience or seen instances of SBA financing on deals with higher multiples outside of the typical 3x-5x? Additionally, if a "qualified" valuation firm with "qualified sources" provides a valuation say at 7x-10x, has the financing been granted? Thanks, Doug

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reply by a lender 1yr ago
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA

I concur with Ishan. It is hard to make the numbers work on an SBA loan at a multiple much higher than 6x as usually the cash flow available will be insufficient. The SBA loan cannot exceed the valuation amount. So if the valuation comes in for less, you would need either more equity down or a larger seller note to make up the difference. Happy to look at any particular requests you may have and provide more specific guidance and see if there are any creative ways to structure the transaction. You can reach me here or directly at redacted Good luck with your search.

reply by a searcher 1yr ago
in Fort Collins, CO, USA

Ishan, Brad and Tom, thank you much for your feedback and information - in line with my thinking and helpful to hear some validation and additional perspectives. Tom, I likely will reach out if I proceed. Thank you again.