Non-Traditional Lenders (Non-SBICs) referrals for a 10M deal?

searcher profile

May 30, 2024

by a searcher from University of Pennsylvania - The Wharton School in Philadelphia, PA, USA

Currently looking at a medspa deal 5 locations, over 2M EBIDTA, 1oM PP. Looking for current referrals. There is a thread about a year ago that I will reach out to those people as well. The business is not eligible for SBA because it has a large amount of addbacks that are documented. The seller is also willing to carry a note to bridge the gap.

Best,
Angela

0
9
100
Replies
9
commentor profile
Reply by a lender
from Montclair State University in Odenton, MD, USA
Hi Angela, you may want to reach out to the local community bank where the business is located and see if they have any conventional options for a deal this size. If the addbacks are legitimate , I’m not sure why it’s not SBA eligible.

If the deal can’t qualify under SBA guidelines, I’m not sure how it will qualify under conventional terms. Conventional loans require a higher debt service ratio requirement and have strict covenants.
commentor profile
Reply by a professional
from University of Massachusetts Amherst in Boston, MA, USA
Hi Angela, we help ETA entrepreneurs secure funding for their searches. We can potentially help you out with funding. Could you fill up this form: https://form.jotform.com/ridethewave/funding-ally, and please text###-###-#### or email redacted and I can see if we can help you out.
commentor profile
+7 more replies.
Join the discussion