time frame for 2nd or 3rd SBA loan

by a searcher

3 weeks ago

Hello Everybody

How long do SBA 7a lenders like to wait before they finance your second acquisition?

To give you some info; i acquired a business earlier this year and I'm in the process of getting my 2nd acquisition target (in a related sector) reviewed by my lender.
(assuming it goes thru, we should get it closed in###-###-#### days)

After this deal tho, i want to have something lined up for acquisition to i can close a 3rd deal 1-2 months after i close this one.

Is there any way i can make the process go faster?

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3 comments

searcher from Millersville University of Pennsylvania

Like anything else the answer is going to be...It depends on the lender and your situation. If you purchased a business where you already have a lot of experience or expertise it's more likely to get it funded. If you bought a business where you're not actively running the day-to-day and have a head of operations or general manager doing those things, then it's more likely. On top of all these factors it's going to depend on the size of the acquisition related to the size of your current business and whether the lender thinks you can handle it. And of course there's the whole "it depends on your lender" answer as well. I'm sure there are lenders who would do this, I'm also sure there are lenders that would not.

While I didn't end up getting the LOI accepted, I submitted an LOI to acquire another business 4 months after closing on my first one. I ran the numbers by my lender and explained why I thought it had good synergy and why I was looking so quickly after closing the first one and asked if they'd be willing to review the loan, and my bank was willing to do so.

With all things Search I feel like your mileage may vary

2 weeks ago | like reply | 0 likes

searcher from Brigham Young University

Following this situation.

2 weeks ago | like reply | 0 likes

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