Small $ Lending without the SBA?

by a searcher from Stanford University

1 year ago

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!

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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.

1 year ago | 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.

1 year ago | like reply | 0 likes

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