Close · Aerospace & Defense

SBA Financing Counsel for Aerospace & Defense Acquisitions

Securities and M&A counsel for independent sponsors structuring aerospace and defense transactions, from LOI to close to the capital markets that open up afterward.

EV range $15M to $200M EV EBITDA $3M to $30M Audience Independent Sponsor
The deal context

The economics on a aerospace and defense platform deal usually hinge on a handful of structural decisions. SBA Financing is one of them.

The typical aerospace and defense platform sits at $15M to $200M EV with EBITDA in the $3M to $30M range. The thesis runs on tier-two or tier-three supplier consolidation with certifications as moat. Foreign LP capital can trigger CFIUS review on the cleanest of deals. Map the cap table early.

The moves

How SBA Financing actually gets structured.

  1. Confirm eligibility against SBA size standards before signing the LOI.

  2. Structure personal guarantees with care; SBA lenders require them but they can be narrowed.

  3. Plan the seller note as on-standby debt, supporting the SBA loan covenant package.

  4. Time the SBA approval process into the closing schedule; allow 90 days from full application.

  5. In aerospace and defense, layer in ITAR / EAR registration transferred or refiled before close as part of the SBA Financing workstream.

The common mistake

Promising the seller an SBA-funded close in 60 days. SBA does not move at LOI speed.

Jason's take
"SBA debt is the cheapest money in the independent sponsor market. The trade is paperwork and time."
Jason Powell · SBA Financing
Capital after close

The deal is one thing. The capital that opens up after close is another.

Capital after close is where the IRR actually gets made. The right introductions at month nine through month thirty are where this practice works as hard as it does at the LOI.

MONTH 18
Senior refi
MONTH 24
Dividend recap
MONTH 36
Growth equity
YEAR 4–5
Strategic exit
TALK TO JASON

An LOI on the desk, a aerospace and defense target, and a SBA Financing question worth a real conversation.

Twenty minutes of practitioner-grade input from a securities attorney whose first move is to read the deal, not the engagement letter.