Should we be using SBIC?

by a searcher from The University of Auckland - The University of Auckland Business School

1 year ago

Just wanting to confirm that SBA 7(a) (and 504) should be preferred over SBIC, and if so why?  

Also, can SBIC lend to non-US citizens?

0 likes
183 views
11 comments

searcher from University of California, Berkeley - Haas School of Business

Interesting discussion. Thanks for sharing!

5 months ago | like reply | 0 likes

investor from Harvard University

These are totally different products/lenders. SBICs typically lend to larger (but still "small") businesses compared to 504 SBA lenders. With SBIC leverage, the interest rate is much higher, but there is more debt available and no personal guarantee. Repayment terms can also be more favorable with SBICs (i.e. a cash flow sweep as opposed to fixed amortization).

1 year ago | like reply | 2 likes

More on Searchfunder

Just Closed on My First Deal! Reflections and Takeaways for other Searchers

45,152 transactions are available on Searchfunder (now searchable by keyword)

Now everyone has unlimited IBISWorld access

Self Funded Acquisition: A few Things I Learned

Examples of self-funded searcher websites

2 Best Ways To Find Motivated Sellers, Off-Market Deals

Investor seeking Self-Funded Search Deals

6-7x for a Self-funded Search Deal?

Searchfunder is an online community and toolkit for searchfunds. Over 80% of those involved in searchfunds maintain a Searchfunder.com account to help them network, problem solve challenges, and keep up with the industry.

We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.