SBA + pari passu conventional loan recs?

February 15, 2024

by a searcher from The University of Chicago - Booth School of Business in Chicago, IL, USA

Has anyone had success closing a deal or know of any lenders that are good for issuing acquisition financing in the form of an SBA loan + pari passu conventional loan? I know Live Oak and Ivanhoe do this. Are there others that anyone can recommend? For reference, I'm looking at a SaaS deal that will be between $5M and $10M.

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Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA

I would be happy to have a conversation and see how we might be able to assist you. We are a Commercial Loan Brokerage shop with over 500 funding partners and over 60 SBA lending partners, many of which do parri passu financing. However, the biggest hurdle you are going to have on a SaaS business is the lack of hard collateral. The more goodwill financing you need, the harder it is to get a lender to take on the parri passu risk. The SBA loan and Bank loan on a parri passu loan share in the collateral. If the collateral is all goodwill, the Bank is at risk of a full loss on the Bank portion of the loan in a liquidation scenario. So Bank's tend not to be as aggressive doing parri passu debt when there is not some hard collateral. Just speaking from our experience. I have also seen lenders doing parri passu somewhat pull back recently due to economic concerns. You can reach me here or directly at redacted

Reply by a lender
from University of Southern California in Los Angeles, CA, USA

Would love to help you with your SBA loan. We work with all the major SBA lenders that can go above the $5m cap and for the right deal can offer excellent rates like prime + 1% or fixed at prime for 10 years. The bank pay us after your loan closes, so this is a 100% free service for you. On average, we save searchers 0.5% on their interest rate and close deals 30% faster. When lenders compete, you win!

You can reach me here or directly at redacted You can also click here to schedule a meeting with me: https://cal.com/ishan-jetley-3d73m8/30min. Look forward to chatting!

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