How to Raise Debt for a non-SBA eligible Deal?

searcher profile

August 29, 2023

by a searcher from University of Missouri-Kansas City - Henry W. Bloch School of Management in Overland Park, KS, USA

I am looking at a foreign entity that will require ~$1m (USD) in debt to get done (I have the equity, just need debt). Because it is not US-domiciled, it is ineligible for an SBA loan. Any recommendations how to get the funding?

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commentor profile
Reply by a searcher
from The University of Chicago in Cleveland, OH, USA
Pretty broad question, and there are a number of ways to go about this. There are several banks that will work with searchers to fund deals. Their appetite is going to depend on your other financing sources, as well as the deal. People have also mentioned non-bank lenders, who offer more flexibility but are going to charge higher rates. Lenders also will look at your background and resume. Some won't lend for ETA type deals without prior operating experience. Good luck.
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Reply by a searcher
from University of Maryland at College Park in Annapolis, MD, USA
Jacob, it really depends on the particulars of the deal, including the type and structure of the deal, loan size and terms, company domicile, geographic footprint, credit ratios (LTV, DSCR, sponsor equity, etc.), use of proceeds, etc. There are many options and navigating the path is an art not a science. I am happy to advise if you need help.
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