$3.69M SBA 7(a) Loan Fuels Expansion for Growing Construction Firm
Introduction
Strategic financing fuels business expansion. As businesses grow, the need for expansion becomes a critical turning point. For one rapidly scaling construction firm, securing the right financing was the key to unlocking the next phase of success. Faced with increasing project demand and operational constraints, the company required a larger facility to centralize operations, increase workforce capacity, and take on more large-scale contracts.
Cornovus Capital structured a $3.69 million SBA 7(a) loan to support this expansion—offering 104% loan-to-value (LTV), no money down, and cash flow-based approval. This customized financing solution enabled the company to acquire a new facility, preserve working capital, and seamlessly meet critical deadlines for the seller’s 1031 exchange.
Challenge
Expanding to support rapid consumer and corporate growth. A growing construction company specializing in Division 10 product installation and supply needed a larger facility to accommodate increasing project demand. The company provides critical finishing materials for large-scale commercial and institutional developments, streamlining procurement and installation for general contractors.
As revenue continued to grow and contract volume increased, the company faced operational constraints due to limited office and storage space. Expansion was essential to:
- Centralize inventory and logistics to improve operational efficiency
- Increase workforce capacity by hiring additional estimators and project managers
- Support larger commercial projects and expand bidding capacity
Key Challenges:
- Securing 100%+ financing for expansion without impacting cash reserves
- Obtaining loan proceeds exceeding the purchase price to cover closing costs and working capital
- Structuring a cash flow-based loan without requiring excessive collateral
- Closing on a strict 1031 exchange deadline to finalize the acquisition
Solution
$3.69 million SBA 7(a) loan with 104% LTV. Cornovus Capital structured a $3.69 million SBA 7(a) loan tailored to support the company’s expansion strategy.
- 104% loan-to-value (LTV) covered the full purchase price, closing costs, and additional working capital
- No money down, allowing the company to preserve cash reserves
- Cash flow-based approval, eliminating excessive collateral requirements
- Expedited closing in 45 days to meet the seller’s 1031 exchange deadline
Results
Business growth and operational expansion. This financing package positioned the company for long-term success by enabling:
- Acquisition of a larger facility to support future growth and improve logistics
- Increased workforce and bid capacity, allowing the company to take on larger contracts
- Improved efficiency and cost savings by eliminating reliance on multiple storage locations
- Higher revenue potential, with expanded capacity to manage high-value projects
- Seamless transaction execution, meeting the seller’s deadline while ensuring a smooth transition
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