Seeking short term loan for downpayment on loan... 60-90 days $160K returns $176K

September 16, 2025

by a searcher from Purdue University in Mesa, AZ, USA

I am acquiring a business and require 10% down on a $1.6M loan. I am seeking an investor to put up the 10% into an escrow account with the lender until the funding is distributed. The loan will be paid back with interest upon funding. If the loan is not funded, your money will be returned. The risk is having your funds tied up for###-###-#### days without any return if we don't get funded. The upside is a 10% back on your funds in###-###-#### days. (~40% annual return). Need a deal quickly! Please get back to me quickly.

Reply by an investor
from Karel De Grote Hogeschool in Belgium

What you’re proposing is unlikely to work with any institutional lender. Whether SBA or conventional, the equity injection has to be true at-risk capital, either your own cash, a documented gift, seller financing (in some cases), or an equity partner who’s actually taking ownership risk. A short-term investor loan held in escrow won’t qualify, since lenders trace the source of funds and don’t allow repayable “equity.” If you’re not bringing personal liquidity, your viable paths are seller financing, an equity co-investor, or going outside the bank/SBA system into private or mezzanine capital, but this comes with higher cost and different structures. Let me know if you need more info. Thanks

Reply by an admin
from Massachusetts Institute of Technology in Portland, OR, USA

^redacted‌ - please repost this using the PPM function and select Searcher Seeking Investor. This will make it easier to find/filter going forward. However, you might have more luck just raising the equity you need from a self-funded investor on more conventional terms. For example see: https://searchfunder.com/post/meet-pact-simplifying-sba-backed-acquisitions-with-investors

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