SBIC Deal Structure

searcher profile

April 29, 2024

by a searcher in New York, NY, USA

Does anyone have details on typical structure and parameters when purchasing a business using SBIC financing?

I understand SBIC does not require a PG and they may ask for some equity.

Any color on LTV available, rates, amortization, minimum DSCR, covenants, minimum EBITDA or tranche size, etc?

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commentor profile
Reply by a lender
from Montclair State University in Odenton, MD, USA
The ones that I know will do debt financing. The minimum loan size is typically $5,000,###-###-#### to 7 year repayment and debt service ratio of at least 1.5 on a historical basis. LTV is typically at 70 to 80%. The ones I know are mission based and cater to minority groups.
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Reply by a professional
from University of Southern California in North Palm Beach, FL, USA
Has anybody wondered whether lenders can come after borrowers who don't provide a personal guarantee?
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+3 more replies.
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