Two acquisitions using SBA loans in less than a year?

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November 12, 2023

by an member from The Citadel - The Citadel School of Business in New York, NY, USA

Anyone have experience doing two deals in one year? I was told you generally need to wait 12 months, outside of the operational concerns, would be great to hear from someone that has done this.


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Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA
Great question. It really depends on what you are buying and what you are trying to accomplish. We have closed on the acquisition of two businesses into one deal before. We have also closed multiple deals in one-year as well. Most of it has to do with how strong each deal is and what industries they are in. If you are looking to buy two companies in different industries in different parts of the country, it is going to be hard to convince one lender, let alone two lenders, of your ability to operate both businesses. But if you are purchasing businesses in the same industry or in the same geographic location, it is very doable.

I usually recommend being up front with your initial lender on your plans. If they are on board, you can even get a soft pre-approval or interest in advance. However, sometimes it makes sense to close them with separate lenders, which is an option as well.

If you would like to discuss further, you can reach me directly at redacted or here. Good luck.
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Reply by a lender
from Pennsylvania State University in Tampa, FL, USA
^redacted‌ is 100% correct in my experience. I've closed 2 in one deal a few months ago, and am currently looking at a bolt-on for an operator that closed with me in May. Feel free to reach out if you'd like more specifics###-###-#### =3044 redacted
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