Experience with SBA 7a + Pari Passu loan?

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May 05, 2025

by a searcher from University of Alabama - Birmingham in Texas, USA

I'm looking at a business with purchase price between $5-10M. Has anyone used a 7a loan along with a "Pari Pasu" loan to cover the amount greater than the 7a max and equity invested? If so, were the rate, term, amortization of the Pari Passu similar or the same as the 7a loan? TIA.
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Reply by a searcher
in Longwood, FL 32750, USA
Thanks, Luke! Yes — it’s possible to combine an SBA 7(a) loan with a pari passu loan to cover a $5–10M deal. The pari passu lender shares collateral and equal payment priority with the SBA lender. Rates and amortization on the pari passu portion may differ, but lenders often try to align payment schedules. The borrower still needs to meet equity requirements (usually 10–20%). I hope this answered the questions for you - let me know Thanks
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Reply by a lender
in Falmouth, MA, USA
Feel free to reach out at redacted
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