Small $ Lending without the SBA?

searcher profile

March 30, 2023

by a searcher from Stanford University in Boston, MA, USA

I'm looking at a potential transaction (the first in a roll-up strategy) and was wondering if anyone has explored small dollar lending options that don't involve the SBA? I'm looking to have a seller roll-over equity which would disqualify the deal from SBA eligibility. At the same time, the loan size is only ~$900k (@ 50-50 debt-equity). Curious if other searchers have worked with lenders who entertain loans of that size without backing from the SBA. Let me know!

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commentor profile
Reply by a searcher
from State University of New York (SUNY) in Plattsburgh, NY, USA
Agree with the above. Start with the sellers bank, with his permission. The bank will know the revenue history. If that doesn't work, go to a bank you have a relationship with. If you have a good relationship and the numbers make sense, it can work. From there move on to other area community banks. If you knock on enough doors, someone will finance your deal.
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Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA
It is definitely something we can look at. Community Banks do provide options for this type of financing. Usually you need to be below a 65% loan to cost, which it sounds like you are. I would be more than happy to get on a call and see how we might be able to assist you. You can reach me directly at redacted or here. Thank you.
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