Closing an SBA-backed deal with an institutional partner

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March 12, 2026

by a searcher from Columbia University in New York, NY, USA

We are working our way through a closing, and have a fantastic institutional equity partner that we're working with. Changes to the SBA rules and their interpretation w/r/t LP-GP structures seem to be confusing many of the people around our table. Have any here closed an SBA deal since the rules changed alongside institutional equity? I'd love to speak if you'd be up for that.
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Reply by a searcher
from Southern Illinois University at Edwardsville in Laramie, WY, USA
Second to ^redacted‌ This is very painful. There may be 50+ LPs. They don't want the headache. If one rebels then the whole pool, is no good. I had to have my institutional investor come in as working capital only and do some deal restructuring to make it happen.
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Reply by an intermediary
from Gonzaga University in Lake Stevens, WA, USA
What ^redacted‌ and ^redacted‌ said, follow. I'll add that if LP's supply statements be sure the source of the statement is available, aka an "e" print out without the URL or other source proof will fall out at review. Can get dicey even with the CPA providing a letter of funds or asset institution holding funds providing a letter of funds without the history support. LP's can be tough when they have half a billion in assets and someone wants proof they can provide $1m. Your powers of persuasion will be tested.
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