SBA Loan Equivalents in EU countries - how much leverage to expect?

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January 16, 2020

by a searcher from INSEAD in Sydney NSW, Australia

Does the EU have an equivalent to SBA loans and what are the similarities/ differences? What would you expect the maximum and average leverage levels (debt/equity ratio or % debt) to be?

Thank you!

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Reply by an intermediary
in Manchester, UK
No such thing as EU countries, each individual country will have its own products. There is no SBA equivalent in the UK, there are various state supported schemes but they have been hijacked for COVID support loans. Leverage will depend on the deal structure, type of business etc - generally banks top out at 2.5x in the lower mid market, (proper) debt funds might go to 4x (sometimes higher) if not sponsored, but all will want a decent equity cushion regardless.
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Reply by a searcher
from University of Victoria in London, UK
Thanks for sharing a great question Vasilios. Are we seeing any other SBA Loan equivalents across Europe?
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