Advice on Structuring SBA Financing for Business & Leasehold Acquisition

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by a searcher from University of California, San Diego
in Honolulu, HI, USA

1yr ago

Advice on Structuring SBA Financing for Business & Leasehold Acquisition

I’m evaluating an acquisition and would appreciate insights on how best to structure and finance the deal.

Deal Overview: I’m looking to acquire both the business and the leasehold property it operates from.

Here are the key details:
- Leasehold Property: Expires in 16 years, generating $10K/month in rent.
- Business Details: > Annual SDE: $470,000 > Inventory Value: $2.75MM
- Proposed Down Payment & Financing Approach:
- 1031 Exchange: Using equity from a fully paid-off townhome valued at $800,000.
-If additional capital is required, I plan to negotiate a 10% seller’s note on standby to satisfy SBA’s equity injection rule.

Key Questions re Leasehold Structuring:
- Any advice on financing a leasehold property with 16 years remaining?
- Are there workarounds to avoid SBA’sredactedyear minimum lease requirement?
I appreciate any insights or experiences from those who have structured similar deals.

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reply by a lender 1yr ago
from University of Southern California in Los Angeles, CA, USA

I’d like to introduce you to a few lenders that might have work arounds for this situation. We work with all the major SBA lenders. You can reach me here or directly at redacted You can also click here to schedule a meeting with me: redacted. Look forward to chatting!

reply by an intermediary 1yr ago
from The University of Texas at Austin in Dallas, TX, USA

^redacted‌ Happy to have a conversation here and see what flexible financing we can offer. Please reach out to me at redacted