Sale Leaseback with SBA Financing in a Tertiary Market – Structuring, Timeline & Challenges

June 10, 2025
by a searcher from Baruch College-The City University of New York - The Zicklin School of Business in Tampa, FL, USA
I’m exploring a potential sale leaseback transaction in a tertiary market, and considering the use of SBA 504 financing as part of the structure. I’d appreciate insight from anyone who’s executed or evaluated a deal like this—particularly around:
• The process and timeline when SBA financing is involved
• Key due diligence steps unique to this type of deal
• How to position the leaseback structure to an existing owner-operator (we’re considering having them remain post-closing on a short-to-mid term lease, without spooking them mid-negotiation)
• Challenges in securing investor interest in tertiary markets, and what makes these deals pencil out
• Any gotchas to be aware of with SBA involvement, especially from a compliance or eligibility perspective
I’m still early in structuring this, but would welcome any experiences, war stories, or practical tips. Open to connecting directly if you’ve done something similar.
in Ponte Vedra Beach, FL 32082, USA
from University of Missouri in St. Louis, MO, USA