Creative Finance; Assuming an SBA EIDL loan

February 18, 2025
by a searcher from Sophia University in The Woodlands, TX, USA
Looking to acquire $1 million business. With 30% adjusted SDE. Business is in New Mexico.
Seller currently has a $150K EIDL loan on the business at 3.75%. - nothing in the market beats that rate and I was wondering if there is way I can assume this debt as a second position to the primary loan.
Anyone done this before? Also would a primary conventional lender consider this as seller contribution towards buyers down (similar to them allowing a seller to contribute 5% of the purchase price?) as it would reduce their LTV on the deal. Any insight would be appreciated.
Also looking to speak to any Loan Brokers out here who may be interested in this deal. I'm at redacted John
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA
in Falmouth, MA, USA