In November 2025, we focused on “Financing Your Deal: SBA vs. Non-SBA,” featuring guest speaker Adam Steiner, who represents both banks and borrowers in SBA and conventional transactions. We covered what’s new in SBA financing, how it compares to conventional debt, and the key considerations searchers and independent sponsors should weigh when structuring a deal. The conversation offered insights from the perspectives of lenders, borrowers, and counsel to help navigate financing decisions in a shifting market.
Question Timestamps
15:15: In a partial buyout situation, so sellers rolling some equity, any other equity that comes in—namely an investor that’s helping me with my equity injection into the business—has to guarantee?
38:45: I mean, other than the lack of PG—which, by the way, also could still exist, but let’s assume it doesn’t. Other than the lack of PG, everything about debt for these larger deals was way less appealing. Adam, is this just the effect of, you know, a government program that’s essentially subsidized?
44:19: Do you have any sense of distressed SBA 7(a) loans? So we always talk about the default rate, but the default rate only counts those loans that are actually in default. But we assume that there’s some additional quantity of borrowers above that who are going through distress, who are having fetal-position moments, who are going through hell, even if they don’t show up in the data. Do you have any sense of what that strata is?
46:36: How soon can one refinance an SBA loan with non-SBA debt, and what is generally the marker for when one can do that?
47:38: Do SBA lenders allow you to get a working-capital line of credit from third parties?
48:16: Rules on permanent citizen, permanent resident, citizenship, etc., on SBA. So you need to be a permanent resident to qualify for SBA, not just a citizen. Well, no—you need to be a citizen, not just a permanent resident. What are the rules there?
49:03: We talked about, for SBA 7(a) acquisitions, did you say that investors in the deal have to PG the loan, or only if it’s a partial acquisition?
49:49: Are there specific SBIC funds that you’ve worked with to help fill the gap between an SBA loan and acquisition purchase price where pari passu won’t do it or it’s not offered?
50:19: Are there any above-board strategies for excluding a personal residence from the PG?
54:38: We’ve heard before about engaging a local credit union or bank and trying to get similar SBA terms to finance. Is that likely to work? Know anything about that?
56:58: If you are doing an SBA loan and you’re using investor capital—you’re having some investors contribute equity to the required equity injection, correct?
58:30: Kind of a trend question. It’s interesting that the SBA requirements are getting more restrictive with respect to seller notes, rolled equity, etc. Is that a trend? Is there any legislation around increasing the $5 million cap or improving incentives for buyers?
1:00:11: What are you seeing for rates for SBA loans right now, and what should we forecast? I heard it was around 10%, but that doesn’t include paying off the loan over 10 years. So is it closer to 15% anyway? What are you seeing for rates?
1:00:57: There is the occasional Acquiring Minds guest who got a fixed-rate SBA loan. Is that something that you should reach for as a buyer?
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