The Death Valley of Funding $10 -$15M in EV

May 16, 2024
by a searcher from Columbia University - Columbia Business School in Jacksonville, FL, USA
So, I find it really easy to fund deals in the $5M range (SBA) and > $25 - $20M (Independent Sponsor), but find it extremely difficult to find funding in the middle because most conventional financing institutions have thresholds of $3M in EBITDA and this is kind of a "tweener.'. It's this squarely in Conventional, Conventional + Mezz, SBA + Mezz land? Any help is appreciated.
from University of Notre Dame in New York, NY, USA
from Clemson University in Raleigh, NC, USA
The last time the SBA limit was increased was in 2010 from $2 million to $10 million. Assuming a 3% annual cost of living increase this means business buyers have 42% less purchasing power as they did 14 years ago.
This is why approximately two months ago Steve Mariani (Diamond Financial) started lobbying for a loan guarantee increase to $10,000,000, If interested we recorded a short video about the justifications for an increase:
https://enlign.com/blogs/sba-sop-change-to-5-million-guarantee-cap-to-allow-individuals-to-receive-multiple-guarantees