Hi Monica, happy to discuss on our call. Note that most SBA lenders won't do Pari Passu, but we probably have the largest number of these lenders on our platform (16 as of now), and that number continues to grow as more lenders start Pari Passu programs.
Others are correct in that Pari Passu deals have stricter underwriting than standard SBA deals, which is because the lender isn't offloading 75% of the loan default risk to the SBA on the Pari Passu portion of the loan.
So the underwriting for the Pari Passu portion is very similar to conventional bank underwriting.
Happy to discuss more on our call, and anyone else interested in SBA Pari Passu financing, please feel free to email me at redacted
reply
by a lender
1yr ago
in Falmouth, MA, USA
^redacted there are only a few SBA lenders truly skilled in executing Pari Passu structures. While some are making an effort, they can be hesitant to issue commitment letters. Feel free to reach out at redacted