Seeking SBA lender for deal with contingent seller note

by a searcher from University of Manchester

2 years ago

Dear all,

My partner and I are looking to acquire a company where the deal structure consists of 50% on day 1 and 50% deferred. The deferred element is a contingent seller note that it is released subject to revenue targets being met. I'd be grateful if anyone can recommend an SBA lender willing to finance this kind of deal.

Many thanks,

Andrew

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11 comments

searcher from Georgetown University

--@----.com

1 year ago | like reply | 0 likes

searcher from Wabash College

Plenty of banks will go for contingent pay-outs, but the advance they'll make is much lower on a conventional note than using SBA financing. The SBA guarantees a majority of the 7a loan, so the banks are able to get more aggressive if the deal fits the program

2 years ago | like reply | 1 like

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