[alberto]

1.5M balance in current SBA 18,000 monthly payment now

deposits 130k monthly

needs an additional 500k

is this possible, I dont usually deal with this type of deal..

914-643-6776 cell
914-239-3456 office
albertom@BusinessCreditGlobal.com

[dpFund]

While I'm sure there are funders that will jump all over this, I think your client has a couple of issues.

First, if I were the business owner, I would look to see if my SBA contract prohibits stacking.

But even if they allow it...supermarkets have slim margins. I don't see how they can afford $500k of short term funding on $130k/month of deposits.

Yes, there are brokers/funders that will salivate over the idea of funding them...shoving them down the road to insolvency.

Sorry for the glass half empty answer...but as a direct funder that is my view!

If they own the building/real estate their supermarket is in and they want to pay off the SBA and take cash out...then I may be able to help you with rates in the 8% range. They need a long term like that in order to be able to truly afford the money.

Hope this helps.

Best,

Dan Page
Direct: (303) 938-8280
dan@fundingstrategypartners.com

[alberto]

thank you,
I appreciate your input.. they dont own the building. and SBA is allowing them to stack according to owner.. but i guess we need to verify that..

[alberto]

send me more info on your guidelines Dan

[Kevin Henry-Seacoast]

thank you,
I appreciate your input.. they dont own the building. and SBA is allowing them to stack according to owner.. but i guess we need to verify that..

Alberto,

get a copy of his lending agreement. Chances are he cannot pledge any assets without permission.

[TedFundy]

SBA is very strict from our history. No subordinations, no intercreditor agreements.

[John Galt]

Their are work arounds by most funds for subordination issues with SBA that are allowed.

[abfunders]

Bluevine stacks behind an SBA.

[RichardGerard]

Alberto,

I suggest finding out what the 1.5M SBA covers.. Are they attaching to Real Estate (likely on a 7a or 504- especially if they're only doing 1.5 PER YEAR)?

Dan is right regarding Supermarkets and margins, AND Bluevine has no receivables to attach to as Supermarkets are POS. If the use of funds is for an acquisition or finite expansion- there might be something that can be done. Aside from that the Collateral will let you know if anything is leverage-able.