Small $ Lending without the SBA?

by a searcher from Stanford University

Mar 30,2023

I'm looking at a potential transaction (the first in a roll-up strategy) and was wondering if anyone has explored small dollar lending options that don't involve the SBA? I'm looking to have a seller roll-over equity which would disqualify the deal from SBA eligibility. At the same time, the loan size is only ~$900k (@ 50-50 debt-equity). Curious if other searchers have worked with lenders who entertain loans of that size without backing from the SBA. Let me know!

0 likes
188 views
7 comments

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

The type of loan you are looking for basically doesn't exit in my experience. Most banks won't touch anything below $2M EBITDA on an unsecured basis.

04/02/2023 | like reply | 0 likes

searcher from State University of New York (SUNY)

Agree with the above. Start with the sellers bank, with his permission. The bank will know the revenue history. If that doesn't work, go to a bank you have a relationship with. If you have a good relationship and the numbers make sense, it can work. From there move on to other area community banks. If you knock on enough doors, someone will finance your deal.

03/31/2023 | like reply | 0 likes

More on Searchfunder

Investor seeking self-funded deals in the US

Free Playbook to Increase Valuation & Exit Price

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

CRM Application for Search Fund

How to spot FAKE EBITDA, without spending a nickel on due diligence...

For searchers in Canada

8 steps (and tools) for launching a proprietary search in 3 days

Best MBA ETA Programs

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.