Alternative financing options after maxing out the $5MM SBA 7(a) cap?

June 27, 2025

by a searcher from Università Bocconi in Great Neck, NY, USA

For those who have maxed out the SBA cap, what alternative financing options have you pursued for next set of acquistions? Curious to hear what structures worked best (conventional, seller carry, mezz, etc.), rough timelines, and any specific lenders you'd recommend. Looking to map out next steps for a second acquisition, so would appreciate any insights or lender intros. Thanks in advance!

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Reply by a searcher
from Harvard University in Boise, ID, USA

Very deal dependent. You can surpass the $5mm cap with different NAICS codes but if it is the same NAICS code, then you're going to need decent cash down / lower LTV for conventional, or if EBITDA is high enough ($3m+) then SBIC will take a look at you. If you're combined EBITDA between new acquisition and existing portco is above $3m, you can have SBIC take out the whole book to get out of SBA (highly recommended if possible). Side note: if you have different NAICS codes to get past the $5mm cap, make sure you brush up on the new SBA rules set out June 1st. They tightened the heck out of deal structure a few weeks ago.

Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA

We have helped numerous clients get debt above their SBA limit. You have conventional bank options, non-bank options, you can refinance SBA debt to free up using SBA again, and there are some options to leverage up your SBA debt if you are buying businesses in different NAICS codes. Happy to discuss at any time. You can reach me here or directly at redacted

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