Non-SBA lending options

April 13, 2022

by a searcher from Pennsylvania State University in Philadelphia, PA, USA

Hi everyone, I'm working on a deal that is not going to work for SBA due to a licensing issue. This is a smaller deal, but it's in fire and life safety which is one of the more popular sectors in PE right now so I am trying to get creative.. I'm going to be raising $400-500k of debt to get it across the finish line. Does anyone know of any alternative options that are not exorbitant with their rate? This would be a short term note I'd plan on refinancing after 2 years.

Thanks in advance.
Shawn

Reply by a searcher
from College of William and Mary in Champaign, IL, USA

Are you sure that it's SBA ineligible and not just that that's one bank's interpretation? Assuming it's not the latter- Have you talked to any loan brokers? While most of them will primarily do SBA debt for SMB deals, they might also be able to help with arranging conventional debt. Brad Hettich (who's on here) was very helpful when I was under LOI on a deal that was SBA ineligible.

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