Non-SBA Loans
This might be the Answer to Everyone’s Prayers when it comes to Business Acquisition Loans under $375K
I know from being in the lending industry for the last 13 years there is just no one out there any good at funding business acquisition loans under 375K. Most banks won’t even consider doing these loans at all.It’s just too much work for such a small reward when you take into consideration all the hoops you have to jump through to close the deal.All the underwriting that must be in perfect order for the SBA to guarantee the loan makes doing these smaller deals very difficult. Then on top of that, lenders usually assign the more inexperienced underwriters to those smaller deals creating more problems for everyone.The Problem with Smaller Deals
Most lenders simply don’t want to deal with loans at this level. The time, effort, and compliance requirements don’t justify the return for them. That’s why so many good deals in this range struggle to get funded.
A Different Approach Without the Usual Bottlenecks
What if there was a solution where the SBA did not have to get involved at all?
What if there was a lender who would fund these smaller deals with maximum efficiency and not have to appease all the requirements that are involved in the SBA lending process?
And here is the best part… Loans can close in weeks and not months.
Key Perameters
Here are a few of the parameters below of the loan itself… but just remember these are unsecured loans based on:- The credit-worthiness of the borrower
- The borrower’s ability to run the business
- The health of the business being purchased
Loan Structure Overview:
- Commercial unsecured loans up to $375,000 (up to $500K with credit enhancements)
- Close in weeks, not months
- 10% Minimum Buyer Down Payment
- No personal real estate collateral – no tagging your residence
- Seller notes welcome (and encouraged)
- No reporting to personal credit
- 6 Year Terms
- Rate: 15%
SBA Looks Cheaper. Here’s Why It’s Not.
An apples-to-apples look at what an SBA loan really costs — vs. The Jumpstart Loan℠| Loan Size: $250,000 | SBA | Jumpstart Loan℠ |
|---|---|---|
| Interest Rate | 10% | 15% |
| Term | 10 years | 6 years |
| Monthly Payment | $3,304 | $5,286 |
| Est. Closing Costs | $24,200 | $17,500 |
| Total Interest Paid | $146,452 | $130,610 |
| 1st Year APR | 19.68% | 22.00% |
| Collateral | Required | None |
| Time to Close | 60–90 days | 10–15 business days |
What This Actually Means
- You save ~$6,700 at closing. SBA loans carry packaging fees, business valuation costs, legal fees, lender searches, and a guarantee fee. Jumpstart has none of those.
- You pay ~$15,800 less interest over the life of the loan. Even though Jumpstart’s rate is higher, the shorter term means you pay significantly less in total interest.
- You’re debt-free 4 years sooner. A 6-year payoff means your cash flow improves faster — and you own your business free and clear while SBA borrowers are still making payments.
- No collateral required on loans under $375K. SBA requires it. Jumpstart doesn’t.
- You close in weeks, not months. SBA approvals can take 60–90 days. Jumpstart closes in 10– 15 business days — so the deal doesn’t die while you wait.
Key Takeaways
Smaller deals are often overlooked, not because they are bad opportunities, but because most institutions are not built to handle them efficiently. When the structure fits the deal, speed and execution become the advantage.
If you want to see more real-world deal structures, check out our commercial lending success stories.
Frequently Asked Questions
Are business acquisition loans under $375K hard to get?
Why do banks avoid smaller acquisition loans?
Smaller loans require the same level of underwriting and compliance as larger deals but generate less return for the lender. Because of this imbalance, many institutions choose not to pursue them.