B2B SaaS, $1.4M ARR · San Francisco, CA · 10 months
San Francisco Startup Closed $420K SBA Loan to Acquire Competitor
SBA 7(a) approved for $420K to acquire a competitor. Closing pricing: SBA prime + 2%.
Approved capital
$0$420,000 SBA 7(a)
Challenge
Acquisition target priced at $480K. Founders wanted to preserve runway and not dilute equity.
Approach
- 01Compiled SBA-required documentation package (3 years returns, current YTD, debt schedule, COO).
- 02Built pro-forma financials demonstrating DSCR > 1.5 post-acquisition.
- 03Coached founders through preferred-lender selection and underwriter Q&A.
Outcome
Approved at $420K, 10-year term, SBA prime + 2%. Acquisition closed 60 days later.
FAQs
How long does SBA 7(a) take?
Preferred Lender Program timelines run 45-90 days; standard processing 90-150 days.
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