Non-SBA Lenders for Roll-Ups

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November 19, 2024

by a searcher from Queen's University in Miami, FL, USA

Hey all-

Does anyone have experience or contacts at non-SBA lenders for roll-ups? Trying to think ahead because will likely hit the SBA $5m cap after a couple of acquisitions. In case relevant these will be healthcare deals with the MSO structure

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Reply by an intermediary
from The University of Michigan in Bonita Springs, FL, USA
Many SBA lenders have pari-passu loan programs which will allow you to borrow additional amounts above the SBA limit. I've executed a few of these over the years with Regions, Live Oak, and Huntington. You can also partner with PEGs or FOs with liquid funds. Also, I believe BoA has a strong medical lending program.
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Reply by a searcher
from University of California, Berkeley in Seattle Metropolitan Area, WA, USA
Really depends on what you're optimizing for and how large that initial acquisition is to figure out who wants to be in that partnership as a lender. Can you provide any further info as to what your ideal scenario is? And what you're thinking to optimize or most strongly consider with the partner?
Pari passu can get you to $7.5-10mm of debt with the SBA as $5mm, as Eric mentioned before. Depending on your background/network/industry expertise, suppose you could find a longterm partner. There are a handful of debt/private credit marketplaces/connectors. happy to share
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