$1.7 Million SBA 7(a) Loan Secured for Sports Complex Acquisition
Introduction
Strategic SBA 7(a) structure supports low-down acquisition and long-term expansion. Expanding a sports facility requires more than just financing—it demands a strategic capital structure that ensures long-term success. Cornovus Capital recently secured $1.7 million in SBA 7(a) financing for an entrepreneur acquiring a multi-acre sports complex. With a strong business model focused on tournament revenue, club memberships, and facility enhancements, the borrower needed a low-down payment structure while retaining capital for upgrades.
Cornovus Capital structured a 10% down SBA 7(a) loan, allowing the borrower to move forward with acquisition and expansion without overextending liquidity. The result: a fully funded acquisition with a scalable financial model for future growth.
Challenge
Low historical performance and proforma-based underwriting required strategic positioning. The borrower identified a prime opportunity to acquire a large-scale sports complex but faced several financing challenges:
- Proforma-driven underwriting: Many lenders hesitate to finance deals based on projected future revenue rather than historical performance.
- Underutilized facility: The previous owner had not developed key revenue streams, limiting historical financials.
- Capital allocation: The borrower required a low-down payment to preserve capital for renovations, marketing, and operational improvements.
- Scalability for future growth: The financing needed to allow for expansion into multiple locations and the ability to attract regional and national tournaments.
Solution
$1.7 million SBA 7(a) loan with a 10% down structure and flexible amortization. Cornovus Capital leveraged its expertise in sports and recreation financing to structure an SBA 7(a) loan that minimized the borrower’s cash investment while maintaining financial flexibility.
- Financial and market analysis: Developed detailed revenue projections based on tournament hosting, club memberships, and food and beverage sales. Strengthened underwriting by validating the borrower’s operational experience in similar sports facility management.
- SBA 7(a) structuring and proforma validation: Created a comprehensive business plan highlighting demand for tournament-hosting and premium facility memberships. Positioned the borrower as an experienced operator with a clear strategy for revenue growth.
- Negotiation of favorable terms: Secured a 10% down SBA 7(a) loan, preserving the borrower’s capital for operational improvements. Negotiated favorable interest rates and amortization schedules to optimize cash flow.
- Efficient closing and transition: Guided the borrower through the SBA 7(a) approval process, ensuring a smooth and timely closing. Coordinated with legal, financial, and appraisal teams to finalize the acquisition without delays.
Results
Fully financed acquisition with scalable expansion potential.
- Acquisition completed with only 10% down: Freed up capital for renovations and marketing, enhancing the borrower’s launch strategy.
- Expansion-ready model: Facility upgrades and enhanced programming expected to increase tournament bookings and recurring revenue.
- Community economic impact: Revitalized complex is positioned to attract regional and national tournaments, driving economic benefits for the surrounding area.
- Scalable brand strategy: Financing structure supports expansion into future locations, setting the foundation for a growing sports facility brand.
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 you’re acquiring a business, buying out a partner, expanding operations, or combining real estate into a growth plan—we deliver capital strategies designed for certainty and efficiency.
What Sets Us Apart?
• Advisory expertise across business stages and sectors: We structure financing for acquisitions, expansions, partner buyouts, and practice ownership transitions.
• Innovative capital structuring: We integrate seller notes, working capital, CapEx, and goodwill financing into efficient, customized capital stacks.
• Lender alignment and competitive terms: We match each transaction with lenders who understand your industry—ensuring smooth approvals and favorable terms.
• End-to-end execution and advisory support: From deal modeling and loan packaging to lender communication and closing, we manage the entire process to ensure successful outcomes.
For business owners, professionals, and entrepreneurs seeking flexible SBA financing, Cornovus Capital delivers strategic insight, execution certainty, and long-term support.
Contact Cornovus Capital
At Cornovus Capital, we simplify the financing process with tailored solutions, competitive loan terms, and expert advice. Whether you’re acquiring, refinancing, or developing a property, we’re here to help you succeed.
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📞 513-653-4246
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