Refinancing of SBA loan after 1.5 years or so

Member resources:

Frequent asked questions:

What is Searchfunder.com?

Searchfunder.com is an online community of searchers, investors, lenders, brokers and other professionals. Over 80% of those involved in searchfunds maintain a Searchfunder account to help them network, hire, and mentor others.

What are the benefits of membership?

In addition to accessing the most active online network of business buyers, Searchfunder licenses research that is simply not cost effective for individuals. Access over 15,000 industry reports and 50,000 transaction financials. You also get monthly credits for contact information for your company sourcing campaign with the option to purchase more at drastically discounted rates. Searchfunder has pre-purchased access from these data providers in order to empower individual buyers and to help searchers level the playing field versus private equity.

Do you have deals?

While we are primarily a buy-side network, we do have hundreds of brokers that regularly post deals to the community.

Can I find an internship on Searchfunder?

Absolutely! We have the industry's largest intern job board. If you are considering a search, the first step is to help another business buyer so you can hit the ground running.

What does it cost?

Searchfunder is a subscription service. We offer flexible monthly, annual and lifetime memberships.

Monthly

$79 / month

Annual

$19 / month

Lifetime

$432 / once

Those who maintain an account with us for over 4 continuous years are permanently added to the community without the need for a membership.

Do I need an MBA to join?

While a large number of our members come from dedicated programs at Harvard Business School, Stanford GSB, Chicago Booth, and other top programs, searching is no longer reserved for the elite. With the current abundance of dry powder in private equity, and an increasing number of business owners reaching retirement age, good deals rarely go unfunded.

Post a question, deal, job, etc...

Make a post...

Complete registration to post.

by a searcher from The University of North Carolina at Chapel Hill - Kenan-Flagler Business School
in Austin, TX, USA

5yrs ago

Refinancing of SBA loan after 1.5 years or so

Can you use an SBA loan to fund a deal and then refinance with normal facility after 1.5 years or so in order to get rid of personal guarantee risk? Anyone have any experience with doing this?

6 Likes

661 Views

reply by a lender 5yrs ago
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA

We do quite a bit of both SBA and traditional bank financing. Most Banks in their small business lending groups almost always require personal guarantees. Depending on the Bank size, the small business lending teams typically work with Borrowers with $1 to $50 million in revenue and loan sizes of $100,000 to $10 million. The bigger issue you are going to have in refinancing is do you have the collateral to support a conventional bank deal. If you are doing a leveraged business buyout where most of the value is goodwill and the loan is not fully secured by other collateral, it is going to be hard to get a conventional lender to refinance it unless you come up with more collateral. If the deal is mostly collateralized today and you can get the debt paid down to a point where it is fully collateralized in the future between business assets and real estate, then it would be possible to refinance into a conventional bank deal. But you would still likely have the personal guarantee at that point. If you would like to discuss your specific situation, feel free to reach out to me at redacted Thanks.

reply by a searcher 2yrs ago
from University of Texas at Austin in Houston, TX, USA

I've explored recapping out of an SBA deal where EBITDA has doubled since initial acquisition after 2 years and have not found a reasonable path to a refi with no PG.