Pari Passu Loans

searcher profile

January 30, 2025

by a searcher from City University of New York, Brooklyn College in New York, NY, USA

Curious what other searchers experience has been with them?

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commentor profile
Reply by an intermediary
in New York, NY, USA
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
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Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA
I concur with Ishan. We have closed several over the years but few lenders provide them and the underwriting criteria is significantly more difficult. I would try to avoid having to use a Pari Passu loan if you can and if you do need one, I would try to limit the size as much as possible. Lenders take a much harder look at collateral, equity, guarantor strength, post-closing liquidity, etc. with pari passu loans. I would be happy to have a discussion and see if there is another creative way to structure your deal to avoid Pari Passu or to review your deal and let you know if it is possible in your case.. You can reach me here or directly at redacted
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