Small, Repeat Loan Solutions

searcher profile

November 07, 2023

by a searcher from University of Nebraska at Omaha - College of Business Administration in Omaha, NE, USA

In the context of rolling up a series of small businesses in an area one at a time, what would be a loan option for fast, very small loans on entertainment businesses with high asset to acquisition price ratio (ie kayak rentals, marina services, etc.). Because the are independent and closing time of each uncertain, I would like to finance them on an as they come basis.

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commentor profile
Reply by a lender
from Urbana University in Columbus, OH, USA
Yes it is theoretically possible to use SBA for multiple small acquisitions. I've done it and seen it done many times. Word of caution though, SBA loans carry higher closing costs, even with the SBA Guaranty Fee currently waived on loans under $1M, the other closing costs add up. When we are talking custom loan docs, third party bank closing attorney, title searches, tax verification, business valuation, etc, etc they add up quickly. Basically, it will cost the same to borrow $100,000 as it does to borrow $999,999.

Additionally, the amount of work that goes into a small loan is the same as a $5M loan, so A LOT of SBA Lenders place a minimum loan amount out there that they will work on.
commentor profile
Reply by a lender
from Columbia University in Oakland, CA, USA
Think you're probably well covered with the other lenders and brokers represented here, but happy to connect as well if helpful. Please just shoot me a DM. As always, it can be difficult to line up term debt for a quick closing, but depending on the cash flow profile of these opportunities, there may be different options to explore.
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