SBA Financing Counsel for Precision Manufacturing Acquisitions
Structuring SBA Financing on precision manufacturing deals, with the structure protection and capital connectivity an independent sponsor actually needs.
An independent sponsor closing precision manufacturing transactions in the $10M to $150M EV range has a defined set of moves at the SBA Financing stage. Most of them are not in a generic M&A textbook.
The typical precision manufacturing platform sits at $10M to $150M EV with EBITDA in the $2.5M to $25M range. The thesis runs on platform plus tuck-in machine shops or aerospace-qualified shops. Most precision manufacturing sellers will not sign an LOI without a known capital partner already named.
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 precision manufacturing, layer in AS9100 succession plan as a closing condition 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.
Most independent sponsors solve the closing capital and then run into the post-close capital problem alone. The capital markets relationships that matter at month 18 are part of this practice.
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Bring the precision manufacturing 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.