Thresholds for non-PG Debt Financing

Member resources:

Frequent asked questions:

What is Searchfunder.com?

Searchfunder.com is an online community of searchers, investors, lenders, brokers and other professionals. Over 80% of those involved in searchfunds maintain a Searchfunder account to help them network, hire, and mentor others.

What are the benefits of membership?

In addition to accessing the most active online network of business buyers, Searchfunder licenses research that is simply not cost effective for individuals. Access over 15,000 industry reports and 50,000 transaction financials. You also get monthly credits for contact information for your company sourcing campaign with the option to purchase more at drastically discounted rates. Searchfunder has pre-purchased access from these data providers in order to empower individual buyers and to help searchers level the playing field versus private equity.

Do you have deals?

While we are primarily a buy-side network, we do have hundreds of brokers that regularly post deals to the community.

Can I find an internship on Searchfunder?

Absolutely! We have the industry's largest intern job board. If you are considering a search, the first step is to help another business buyer so you can hit the ground running.

What does it cost?

Searchfunder is a subscription service. We offer flexible monthly, annual and lifetime memberships.

Monthly

$79 / month

Annual

$19 / month

Lifetime

$432 / once

Those who maintain an account with us for over 4 continuous years are permanently added to the community without the need for a membership.

Do I need an MBA to join?

While a large number of our members come from dedicated programs at Harvard Business School, Stanford GSB, Chicago Booth, and other top programs, searching is no longer reserved for the elite. With the current abundance of dry powder in private equity, and an increasing number of business owners reaching retirement age, good deals rarely go unfunded.

Post a question, deal, job, etc...

Make a post...

Complete registration to post.

by a searcher
in New York, NY, USA

2yrs ago

Thresholds for non-PG Debt Financing

What are the minimum EBITDA and minimum tranche size thresholds where one can start to tap into debt financing that doesn't require a personal guarantee (non-SBA)?

What are typical equity cushion %'s for such deals?

What are typical terms and how do they differ from SBA loans?

Which lenders are in the business of making these smaller non-SBA loans?

2 Likes

263 Views

reply by a searcher 2yrs ago
from Adler School of Professional Psychology in Marysville, WA, USA

The non-PG lender that I generally refer to has a loan size minimum of $5M (loan size, not EBITDA). If you're looking for a loan in that range, email me at redacted and I'm happy to make an intro!

reply by an investor 2yrs ago
from Harvard University in Dallas, TX, USA

I had an 18m personal guarantee. When we exited a few years later I talked a lot to the bank and they said the pg was mainly so I wouldn't walk away if things got tough. It reduced as ebitda went up. I think it was 500k at the end. We had very low leverage though. The advantage was they were super fast on deals. We bought a bunch of things that weren't profitable that we would sort almost overnight. They were fine with everything and did some due diligence that we ended up making our default. The original one was 2012, the exit wasredactedOur lender was an insurance specialist called oak street.
I honestly wouldn't have a clue at terms and conditions today. I think the high base rates and the bank failures have made them entirely up in the air. I know searchers I've invested in go to 50 banks. I guess these days it's another search part of the search.
My overall point really is that you do get some advantages of the pg in being able to do deals more easily and it being a lighter touch on ongoing financial document provision. I can't really compare it to sba as although I've invested in a few, I'd view advice as best from those who've actually signed one and operated under it