SBA cool down period between acquisitions?
July 17, 2024
by a searcher from George Mason University in Los Angeles, CA, USA
Hi everyone,
I recently closed on a deal this past February and am looking to acquire another business soon. However, when I connected with the SBA lender I worked with on the last deal, he mentioned that it would be tough for me to acquire another one so soon using an SBA 7a loan given the short time frame since the last business I acquired.
Is this something y'all have faced? Is this a lender specific thing? An SBA guideline around any sort of "cool down" period? Or something else?
Thanks and appreciate the feedback!
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA
If you are using the same business entity and doing an add-on acquisition, then you would need. your existing lender to issue you a denial letter first so another lender could lend to your existing company. However, if you are using a new entity for the new acquisition, you can just work on that and do not need anything from your existing lender to do so.
If you need help exploring options, we are a Commercial Loan Brokerage Shop with over 500 funding partners and over 80 SBA funding partners. We would be happy to connect with you and see how we can help. You can reach me here or directly at redacted
from Florida State University in St. Petersburg, FL, USA
Would be glad to share some insight - definitely lender specific, as different lenders have different requirements on what guard rails they want to see after the acquired business is up and running.
If you would like to look into the secondary acquisition with myself & First Bank of the Lake, it would be my pleasure to discuss.
Feel free to reach out to me via call or text at###-###-#### or redacted