$1.35M SBA 7(a) Loan Provides 100%+ Financing for Construction Business Expansion
Introduction
Unlocking growth through strategic SBA execution. Cornovus Capital structured a $1.35 million SBA 7(a) loan to support the expansion of a high-performing construction firm constrained by its existing facility. The borrower needed a new campus that could accommodate future hiring, increased fleet operations, and revenue growth—without sacrificing working capital. Through a targeted financing strategy, Cornovus delivered 100%+ funding for the acquisition, site improvements, and operational reserves while navigating SBA compliance and closing complexities.
Challenge
A rapidly growing construction services company had outgrown its current facility. Parking space was insufficient, office and training areas were limited, and storage was completely maxed out—creating serious inefficiencies for field teams and daily operations. The company identified an ideal solution: a two-building campus that could support both its current needs and future growth. However, executing the transaction presented a series of challenges:
- Two-Parcel Acquisition from a Single Seller – Though both properties were owned by the same party, the acquisition still required careful coordination on titling, SBA collateral mapping, and use designation.
- 100%+ Financing Requirement – The borrower needed funds to cover the acquisition price, site improvements, closing costs, and working capital—all within a single SBA loan.
- SBA Occupancy Rule Compliance – Only one building would be fully utilized at closing. A detailed property usage plan was needed to satisfy the SBA’s 51% owner-occupancy threshold.
- Proforma-Based Underwriting – The company’s future growth was well-supported but required careful documentation to secure approval based on projected revenue rather than trailing financials.
- Stakeholder Coordination – The deal required alignment between legal counsel, environmental consultants, real estate agents, SBA underwriters, and appraisers to meet regulatory timelines and close cleanly.
Solution
“Creative structuring and SBA navigation were key to getting this deal across the finish line.” Cornovus Capital structured a comprehensive SBA 7(a) loan that addressed all aspects of the transaction—from real estate acquisition to operating capital preservation:
- 100%+ Financing Structure – The loan covered acquisition, CapEx, working capital, SBA fees, and all closing costs—eliminating the need for borrower equity injection.
- SBA Compliance Strategy – Cornovus guided the borrower in reclassifying use areas (e.g., vehicle storage and field team deployment) to meet the 51% owner-occupancy rule.
- Validated Growth Plan – Historical performance and a detailed expansion plan were packaged into a compelling narrative that satisfied lender and SBA underwriting requirements.
- Regulatory & Legal Alignment – Cornovus worked across parties to resolve environmental, zoning, title, and SBA collateral questions in advance of closing.
- End-to-End Management – From commitment to funding, Cornovus oversaw the transaction to ensure a seamless borrower experience and zero closing delays.
Results
“A high-growth business now has the space and capital to scale with confidence.”
- Campus Acquisition Completed – The borrower successfully acquired a two-building property capable of supporting near-term and long-term workforce expansion.
- Operational Capacity Increased – New facilities allowed for the onboarding of additional field staff and office team members, immediately unlocking revenue growth.
- Cash Flow Preserved – 100%+ SBA financing eliminated upfront cash needs and ensured operational liquidity post-close.
- Regulatory Compliance Met – SBA requirements were met on occupancy, use, and documentation—allowing full eligibility and future-proofing the loan.
- Strategic Growth Secured – The transaction positions the business to scale toward a multi-location regional footprint.
About Cornovus Capital
With over 60 years of combined experience, Cornovus Capital is a trusted financial partner specializing in business financing, commercial real estate lending, and hospitality funding solutions. We design customized capital strategies that help businesses acquire, expand, and optimize operations, ensuring long-term growth and financial stability.
Our expertise spans SBA 7(a) and 504 loans, CMBS and LifeCo financing, private capital solutions, and structured debt strategies. By focusing on certainty of execution and closing assurance, we guide businesses and investors through complex financial landscapes, securing funding tailored to their long-term objectives.
Why Partner with Cornovus Capital?
At Cornovus Capital, we understand that complex transactions require sophisticated financing solutions. Whether repurposing commercial assets, structuring high-leverage debt, or integrating municipal incentives, we deliver capital strategies designed for certainty and efficiency.
What Sets Us Apart?
- Advisory expertise in adaptive reuse, commercial redevelopment, and business acquisitions
We have a strong history of structuring financing for property repositioning, urban infill projects, mixed-use developments, and real estate acquisitions that support business expansion and operational stability. - Innovative capital structuring
Our financing solutions include non-recourse construction loans, Mini-Perm transitions, and TIF-backed capital stacks. - Proven track record across diverse transactions
Over the years, we have facilitated financing for a wide range of businesses, developers, and real estate investors, helping them secure the capital needed to grow and succeed. - End-to-end capital advisory and execution
From initial underwriting to securing financing, we provide comprehensive transaction support to ensure seamless execution and certainty of funding.
Contact Cornovus Capital
For businesses seeking flexible financing solutions to support expansion, acquisition, or working capital needs, Cornovus Capital delivers expertise, efficiency, and certainty.
📧 [email protected]
📞 513-653-4246
🌐 CornovusCapital.com