Non-SBA Loan for 80-90% LTV? BIPOC Loans?

searcher profile

February 19, 2023

by a searcher from Harvard University - Harvard Business School in New York, NY, USA

Has anybody seen alternatives to the SBA for an 80-90% LTV loan? We are acquiring two companies with a combined EBITDA of $2m EBITDA with 90% recurring revenue and a 90% gross revenue retention. We are fine with PGs, but one of the sellers want to rollover equity which would make this SBA-ineligible.

Was also wondering if anybody has seen mezzanine debt specifically targeting BIPOC entrepreneurs?

1
7
209
Replies
7
commentor profile
Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA
We are a Commercial Loan Brokerage Shop with over 500 lending partners and we do a substantial amount of business acquisition finance. Unfortunately I do not know of anyone funding 80 to 90% LTC on a conventional basis. There may be some family offices / private investors willing to fund that much, but my guess is they are going to want some sort of equity interest. Equity roll-overs are not currently allowed by the SBA. So you would have to do a full buy-out. If you would like to discuss what that might look like, I would be more than happy to jump on a call. You can ping me here or at redacted
commentor profile
Reply by a lender
from University of North Carolina at Wilmington in Argyle, WI 53504, USA
What industry? I would say finding something like that would be unlikely without some significant bolstering factors. The seller could hold a note with an option to convert after the SBA note is paid in full?
commentor profile
+5 more replies.
Join the discussion