Non-US residents that have a self-funded acquisition in the US?

November 13, 2024

by a searcher in Hastings, UK

Hi there,

I'm a UK citizen who is considering acquisition opportunities in the US. From what I am aware, there is no equivalent to the SBA loan available in the UK. SBA loans are not available unless you are already a US green card holder, but in order to be a US green card holder you must already acquire a US based company for an E-2.

Questions:
- Is there an equivalent of the SBA loan available in the UK?
- Has the existence of the SBA loan and the availability for large capital for new business owners inflated the enterprise cost of US based businesses?

I'm interested to speak to anyone who has been through the business and legal experience of relocating to the US.

Reply by a searcher
from ESSEC Business School in Torrance, CA, USA

Thanks ^redacted‌. As others have pointed out, SBA is only for US citizens or residents so if you do not fit the eligibility, then you can rule out SBA, I have found that SBA typically makes the transaction move fast but there are many alternative forms of capital available in the US, if the business you are planning to acquire is solid (no pump-and-dump) and your profile and industry experience to run that business is rock solid - you will always find more capital in the US than any other place in the world.

Reply by a searcher
from Columbia University in London, UK

Thanks ^redacted‌. No SBA or equivalent loans available in the UK.

In the SME space you are largely limited to the high street lenders, or some of the challenger banks. All at open market structuring and pricing -so lower levels of leverage which would suggest it would impact valuations. In the MBI space there is even a smaller pool of lenders.

+6 more replies.

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