Bridge Loans to SBA

searcher profile

March 22, 2021

by a searcher from Stanford University - Graduate School of Business in Sausalito, CA 94965, USA

For a few reasons (mainly timing), a deal I am working on would need to close without SBA financing, but generally would be SBA eligible and would like to finance with SBA over long term (for obvious reasons). I've heard of bridge loans in ETA ecosystem (obviously risky), but wondering who has recent experiencing (if any) bridging to SBA. Thanks! Have a productive week everyone

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commentor profile
Reply by a lender
in Yorba Linda, CA, USA
Make sure you do not use seller debt as your bridge if you plan to refi into SBA soon. SBA requires a 2 year waiting period to pay off seller debt. If you can find a private party that can move faster than a bank on the close, as long as it has a balloon or similar feature, it should be eligible for SBA refi. You likely will not be able to "reimburse" for equity if you have to over-equitize at close. Happy to go through any questions you may have: redacted
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Reply by a searcher
from Carleton University in Calgary, AB, Canada
Chris, my business partner runs a group who specializes in placing this type of debt, particularly bridge capital. Send me an email and I can make the connection: redacted
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