Former SBA lender turned founder of Pioneer Capital Advisory, a seven-figure brokerage guiding entrepreneurs through SBA 7(a) acquisitions. Closed $250M+ in financing in 3.5 years. Practical, data-driven insights for buyers.
Liquidity After Close: Non-SBA Financing (Part 1)
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This is part 1 of a 2 part series. This week, we'll explore what non-SBA financing looks like. In part 2 next week, I'll show you some examples of deals and how they're financed. We’re Expanding: Pioneer Now Helps Independent Sponsors Source Non-SBA Financing If you’ve been following Pioneer for a while, you know us as the team that lives and breathes SBA 7(a) acquisition financing. Since May 2022, we’ve facilitated over $255 million in SBA loans across more than 115 closed transactions. But here’s what’s been happening behind the scenes: Starting in Q4 of 2025, we quietly began working with independent sponsors on deals that fall outside the SBA box. We’re talking about conventional senior debt, unitranche facilities, mezzanine capital, private credit - the full spectrum of acquisition financing for deals that exceed the SBA threshold or simply require a different capital structure. The relationships we’ve built, the deal execution muscle we’ve developed, and the lender network we’ve cultivated over the last three-plus years translates directly into helping sponsors navigate the debt side of larger, more complex acquisitions. We’re excited about it, and we wanted to give you the full picture. Why Independent Sponsors? Why Now? If you’re not already familiar with the independent sponsor model, here’s the short version: These are experienced operators and dealmakers who acquire businesses without a traditional committed fund. Instead, they source a deal first, then raise capital on a deal-by-deal basis, partnering with family offices, private equity firms, SBICs, and high-net-worth investors to build their capital stack. The model has exploded in popularity. Industry data shows that more than 75% of independent sponsor transactions involve target companies with enterprise values between $10 million and $75 million. The ecosystem supporting these buyers, from capital providers to specialized lenders to advisory firms like ours, is growing fast. A Quick Note on Deal Size
We’ll be straightforward with you: the majority of lenders we’ve spoken with for non-SBA deals have a strong preference for acquisition targets with an earnings profile (EBITDA or SDE) of $2 million or above. That’s the threshold where most conventional, private credit, and SBIC lenders feel comfortable underwriting leverage and servicing debt. If your target is in that range or above, our
Meet Your Non-SBA Deal Team We didn’t just bolt this offering onto our existing team and call it a day. We built a dedicated three-person unit focused exclusively on non-SBA transactions – because these deals require specialized lender relationships, different materials, and a distinct execution playbook. Here’s who you’ll be working with: Rafael Lopes Primary Responsibility: Business Development Rafael is your first point of contact. He works directly with sponsors to understand deal dynamics, evaluate fit with our lender network, and build a go-to-market strategy for your debt raise. If you’re exploring whether Pioneer can help with your deal, Rafael is the person to call. Amaury Dazin Primary Responsibility: Lender Relationships & Market Intelligence Our analyst is focused full-time on building and maintaining relationships with private credit funds, direct lenders, SBICs, and banks across the country. This is the person who knows which lenders are actively deploying, what they’re looking for, and how to position your deal for maximum traction. Think of this role as our lender intelligence engine. Pablo Redondo Primary Responsibility: Execution & Deal Management Once we’re engaged, our associate takes the lead on execution: building your teaser and deal materials, coordinating lender outreach, managing the diligence process, tracking term sheets, and keeping everything moving toward close. This is the person making sure nothing falls through the cracks. How These Deals Are Actually Structured One of the things we love about working with independent sponsors is the creativity involved in building a capital stack. Unlike an SBA deal where the structure is largely prescribed by regulation, non-SBA transactions give you real flexibility to layer different types of financing to optimize cost, leverage, and alignment. Anatomy of a Capital Stack Reading the Stack The capital stack is arranged by seniority. Senior debt sits at the top. It gets repaid first and carries the lowest cost of capital. As you move down, each layer takes on more risk and earns a higher return to compensate. The beauty of the independent sponsor model is that you can mix and match these layers to find the right balance of leverage, cost, and alignment for your specific deal. No two capital stacks look the same. Next week, we'll dive into some examples of deals and talk specifics on how financing is raised. If you’re in the early stages of your search-particularly pre-LOI-and want to understand how conservative SBA lenders will evaluate your liquidity, your experience, and your deal strategy, I’d welcome the opportunity to connect. You can book a short, informal call here: For pre-LOI buyers ready to explore opportunities: Schedule a meet & greet call Already have a deal under LOI and need financing help: Schedule an LOI consultation Until next time, Matthias Smith President, Pioneer Capital Advisory www.pioneercapitaladvisory.com Disclaimer: The information in this newsletter is for informational purposes only and should not be considered legal or financial advice. Business buyers are encouraged to consult with their legal counsel and accountant to ensure the proper structuring of their transactions and to fully understand the tax implications of seller financing. Thanks for reading! Feel free to reply directly to this email with any questions or thoughts. |
Pioneer Capital Advisory LLC
Former SBA lender turned founder of Pioneer Capital Advisory, a seven-figure brokerage guiding entrepreneurs through SBA 7(a) acquisitions. Closed $250M+ in financing in 3.5 years. Practical, data-driven insights for buyers.
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