Pari Passu Debt Funding for the Lower Middle Market up to $10 Million!

Introducing Pari Passu

What is Pari Passu?

Pari passu is a pretty simple concept where we take someone’s $5 million of SBA 7a exposure limit and max that out. Then we add an additional conventional note in what we would consider a pari-passu position for up to an additional $5 million. Pari-passu has Latin roots meaning “on equal footing” or “side by side”.

Both loans will be based on a 10, 25, or blended amortization depending on if there is real estate involved or not. However, we do not need real estate or other hard assets to back up the loan. We are a cash flow lender so we can base this on enterprise value or cash flow of the business. We have structured these for trucking, janitorial, construction, IT, business services, retail, and many other industries.

Why Pari Passu?

Don’t give away equity when you can use debt. Our bank has created a new non-equity debt funding product for the lower middle market up to $10 million.

Introducing pari-passu debt funding! Why give away a percentage of your business when you don’t have to! Giving away equity usually comes with giving away control and profits that you can keep in your pocket instead of investors. These investors may not even have your company’s best long-term interests in mind anyway.

Pari Passu Funded Deals


$10 Million Trucking Company Acquisition: Just Some Trucks & Cash-flow!

The owner of a very successful trucking company was finally ready to hang ’em up after 30 illustrious years in business. He specifically wanted someone to come in and take over his life’s work, a legacy buyer who would run it just like he did! Sam was a successful executive who was searching for something different and specifically wanted something in logistics. Now here’s the biggest question. How was Sam going to finance a $10 million dollar trucking company?

This business did not have a real estate component. It had a ton of refrigerated trucks and some real good cash flow that was sufficient enough to make us comfortable with providing $7.5 million in total loan dollars over a 10 year period. Here is the breakdown on this one: First $5 million using SBA 7A structure and $2.5 million in a conventional loan in pari-passu position. Sam put in $1 million of his own money and a seller note of $1.5 million covered the remaining balance. All in a days work!

Janitor success story icon

How We Funded $7.7 Million Maintenance/Janitorial Company in Alaska!

Adam worked all over the globe in the oil and gas industry and it was taking its toll on him. He found this maintenance business in his home state of Alaska that could possibly be the start of an empire. We structured this acquisition with an SBA 7a for $5 million and a conventional note for $977K in pari-passu position. Adam wanted the seller to hold $960K which we allowed, and he injected the remaining $780K in cash which was approximately 10% of the total project cost. Not bad for a company that was pretty much all blue sky with not many hard assets at all.

Wood framing success story icon

And People Say There is No Loyalty Anymore...Not in this $9.5 Million Framing Company Acquisition!

Two long-time employees of a wood framing market leader in Colorado wanted to purchase the company from the current owners. The current owners were absolutely thrilled to be selling to someone in the organization itself. Now financing a $9.5 million dollar business acquisition is never an easy feat! We structured $5 million SBA 7a in first position along with a conventional loan in pari-passu position for $710K. This also included $600K in working capital which was needed to keep the business afloat for the first 6 months.

The buyers came in with a little more than $1 million in cash and the current owners actually agreed to a $3 million dollar seller note on the difference. They really wanted these two long-time loyal employees to have the business because they knew their life’s work would be in good hands!

Millwork success story icon

Buyer Only Had $2.3 Million in SBA Eligibility Left & Needed $5 Million for Another Acquisition

Arthur and Daniel were trying to purchase a door and millwork company in Florida for just under $5 million. However, they were having issues with the financing because they only had a certain amount of SBA eligibility left. So here is a unique way we structured this acquisition.

We did the first note of $2,277,000 as an SBA 7a to max out their limit. Then, we did another $1,503,000 as a conventional note in pari-passu position. The buyers came in with $627,500 in cash which was approximately 13% of the total project cost along with a $400K seller note to complete the capital stack.

Success Stories

Ammunition Manufacturing Acquisition Closed On The East Coast

Ammunition Manufacturing Acquisition Closed On The East Coast

When most lenders said “no way, it’s too controversial”, we said we don’t discriminate and got this ammunition manufacturing acquisition on the East Coast funded. Here’s how we did it.

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$6.7M Ecommerce Acquisition Closed – Fishing Tackle Company Florida

$6.7M Ecommerce Acquisition Closed – Fishing Tackle Company Florida

We just helped a fishing reel & tackle ecommerce acquisition in Southern Florida get funded using a Pari-Passu structured deal even though there were very few hard assets. Here is the story.

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Oak Brook

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Chicago, IL 60634


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