B2csp,

From the information provided it seems the client has an SBA note and an additional 120k note for 1 year. They are doing 200k per month and you're saying he can 'definitely' handle more debt without knowing profit margin, or the other debt on the balance sheet.

Respectfully I think you'll agree without knowing the details it's hard to say the client can definitely handle more debt. If the Construction Company is subbing out all of its work, and pushing paper for a 15% GPM, they might be losing money with the existing debt burden.