Hi All - just launching my search and thinking through leverage and financing partners on transactions. Deals in the $1-3M EBITDA range seemingly could fit both the SBIC lender profile as well as SBA 7a profile. There seem to be some positives and negatives of each. For example, SBA 7a offers increase leverage and likely at lower rates, but with a personal guarantee. An SBIC can provide credit (plus a portion or potentially all of the credit), but seemingly may have stricter covenants than an SBA loan. There's also the question of what kind of economics a searcher will get in either scenario.
How have other searchers weighed the pros/cons of partnering with an SBIC lender versus an SBA 7a lender?
SBA vs. SBIC Lenders
by a searcher
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