Advanced SBA Structuring: A $9M Pari Passu Case Study | Kalen Foster | Ep. 35 | My SBA Loan Pro

About this episode

Ryan Smith and Kalen Foster discuss a complex $9M pari passu transaction involving a daycare and Montessori school.

In this episode, host Ryan Smith is back in the studio with Kalen Foster to break down a complex pari passu transaction that took over two years to get across the finish line. They pull back the curtain on what happens behind the scenes of complex SBA deals and show how expert-level knowledge of the guidelines can turn a highly challenging file into a successful closing. This specific deal involved borrowers operating a daycare and a Montessori school who were looking to acquire a new business and real estate while also refinancing existing high-interest debt. Because the transaction exceeded the $5 million SBA aggregate limit, the lending team had to employ advanced structuring to make the numbers work. Key Takeaways from this Episode: Structuring Large Transactions: How the team managed an $8 to $9 million deal using a pari passu structure alongside the SBA loan. Navigating SBA SOPs: Why deeply understanding the SBA Standard Operating Procedures (SOP) is critical, and why lenders must meticulously interpret the rules to ensure eligibility. Overcoming Setbacks: How the team navigated changing SBA rules over the two-year timeline, including evolving affiliation rules and…

People in this episode

Host: Ryan Smith

Guest: Kalen Foster

Topics covered

• SBA loans
• pari passu transactions
• business acquisition
• refinancing debt
• advanced structuring
• SBA guidelines
• creative problem solving

Keywords

• SBA loan
• pari passu
• business acquisition
• refinancing
• SBA guidelines
• affiliation rules
• NAICS codes

Mentioned in this episode

Organizations: SBA, Montessori, NAICS, SBA Standard Operating Procedures

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