Structure Recommendations for Down Payment on an SBA Loan

Member resources:

Frequent asked questions:

What is Searchfunder.com?

Searchfunder.com is an online community of searchers, investors, lenders, brokers and other professionals. Over 80% of those involved in searchfunds maintain a Searchfunder account to help them network, hire, and mentor others.

What are the benefits of membership?

In addition to accessing the most active online network of business buyers, Searchfunder licenses research that is simply not cost effective for individuals. Access over 15,000 industry reports and 50,000 transaction financials. You also get monthly credits for contact information for your company sourcing campaign with the option to purchase more at drastically discounted rates. Searchfunder has pre-purchased access from these data providers in order to empower individual buyers and to help searchers level the playing field versus private equity.

Do you have deals?

While we are primarily a buy-side network, we do have hundreds of brokers that regularly post deals to the community.

Can I find an internship on Searchfunder?

Absolutely! We have the industry's largest intern job board. If you are considering a search, the first step is to help another business buyer so you can hit the ground running.

What does it cost?

Searchfunder is a subscription service. We offer flexible monthly, annual and lifetime memberships.

Monthly

$79 / month

Annual

$19 / month

Lifetime

$432 / once

Those who maintain an account with us for over 4 continuous years are permanently added to the community without the need for a membership.

Do I need an MBA to join?

While a large number of our members come from dedicated programs at Harvard Business School, Stanford GSB, Chicago Booth, and other top programs, searching is no longer reserved for the elite. With the current abundance of dry powder in private equity, and an increasing number of business owners reaching retirement age, good deals rarely go unfunded.

Post a question, deal, job, etc...

Make a post...

Complete registration to post.

by a searcher from Pace University
in New York, NY, USA

3yrs ago

Structure Recommendations for Down Payment on an SBA Loan

I'm looking to acquire an SBA loan and raise funds for the downpayment (let's assume $300k)

I'm looking for recommendations of deal terms that might be attractive to investors without giving up more equity than what an investor is investing (e.g. 300k investment for $3MM business = 10% equity)

0 Likes

85 Views

reply by a searcher 3yrs ago
from INSEAD in Boston, Massachusetts, EE. UU.

You can consider the structure you proposed ($300k investment for $3MM business = 10% equity) and offer a preferred coupon to investors. Historically, 6 to 8% was acceptable, however, you have always to check your investors' expectations. Sometimes you can combine the pref with a portion of equity ramp up, and offer investors a participation of 10% + X% to compensate risks. Again, you have to check your investors appetite and balance your ramp up accordingly.

reply by a searcher 3yrs ago
from University of Notre Dame in Kansas City, KS, USA

Recommend you look into a preferred return and/or hurdle rate structure used in traditional PE funds -- similar structure would work here & similar to what Pedro described