Building Products SBA Financing: An Independent Sponsor's Counsel
Structuring SBA Financing on building products deals, with the structure protection and capital connectivity an independent sponsor actually needs.
The economics on a building products platform deal usually hinge on a handful of structural decisions. SBA Financing is one of them.
The typical building products platform sits at $10M to $150M EV with EBITDA in the $2.5M to $25M range. The thesis runs on regional manufacturer or specialty distributor consolidation. Pricing power lives in dealer contracts, not in branding. Read the dealer agreements before the LOI.
How SBA Financing actually gets structured.
Confirm eligibility against SBA size standards before signing the LOI.
Structure personal guarantees with care; SBA lenders require them but they can be narrowed.
Plan the seller note as on-standby debt, supporting the SBA loan covenant package.
Time the SBA approval process into the closing schedule; allow 90 days from full application.
In building products, layer in raw-material pass-through clauses confirmed as part of the SBA Financing workstream.
Promising the seller an SBA-funded close in 60 days. SBA does not move at LOI speed.
"SBA debt is the cheapest money in the independent sponsor market. The trade is paperwork and time."Jason Powell · SBA Financing
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.
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Bring the building products deal. Get SBA Financing done right.
Direct counsel from a securities and M&A attorney with billions in structured transactions, the independent-sponsor-native playbook, and the capital markets network that opens up post-close.