SBA 7(a) Complement

Opportunities for SBA 7(a) Borrowers

The SBA 7(a) loan program offers attractive financing for many business acquisition and expansion opportunities: a ten-year term, subsidized pricing, and flexible covenants. However, SBA loans cannot exceed $5 million per borrower, limiting the size of the projects that may be addressed.  In other situations, an otherwise well-qualified SBA prospect may seek a solution that would permit a non-conforming transaction structure.

Achieve Higher Total Loan Amounts

IntraFi Local Credit loans can be extended together with loans from select SBA lenders to achieve total loan amounts up to $8 million. Through these partnerships, your business can receive an SBA loan for up to $5 million in tandem with an IntraFi Local Credit loan for as much as $3 million to support larger initiatives.

Address Non-Conforming transaction needs

IntraFi Local Credit loans may be used in conjunction with conventional bank loans to support non-conforming transaction structures that are not eligible for SBA financing. In these cases, a borrower can often receive a similar total amount of capital at a blended cost comparable to an SBA loan.  Examples may include situations in which:

  • Required personal guarantees are not available
  • Existing shareholders seek to sell a portion, but not all, of their holdings
  • One or more current owners wish to remain active in the business for more than a year
  • There is an existing SBA loan outstanding that limits additional credit
  • Other factors preclude the application of an SBA guarantee

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IntraFi Local Credit loans are originated by a lender managed by ILC Fund Advisors, LLC (“ILC”) and are subject to the terms and conditions in definitive agreements to be entered into between a borrower and the lender. All product offerings, services, terms and conditions are subject to change without notice. Not all products and services are available in all geographic areas. This is not a commitment to lend or a guarantee of financing. All loans are subject to receipt of a complete application, credit approval, and other conditions. Products offered are not consumer loans. Terms and process are illustrative only, may not be indicative of the terms or process that may actually result, and are subject to change at any time. Loans may be subject to commitment and other fees, as applicable. IntraFi and the IntraFi logo are service marks of IntraFi Network LLC and are used by ILC pursuant to a license.