Glossary · People and paperwork
Private Lender
In short
This refers to an individual or non-bank institution that provides loans, often with different criteria and terms than traditional banks. They can be a source of capital but come with their own set of considerations.
What it means in a deal
While your primary acquisition financing will be from an SBA-approved lender, you might encounter private lenders if you need to bridge an equity gap or secure financing for aspects not covered by the 7(a) loan. Always scrutinize their terms, interest rates, and fees, as they can differ significantly from conventional or SBA loans. Ensure their involvement doesn't conflict with SBA rules.
Related terms
Common questions about Private Lender
- Can a bridge loan from a private lender count towards the buyer's required equity injection?
- When does ownership by a private equity fund trigger affiliation for SBA size standard purposes?
- Can funds from a private equity firm count as equity injection for an SBA 7(a) loan?
- Under what conditions does ownership by a private equity fund trigger affiliation for SBA size standard purposes?
- Can a private investor provide a loan that counts as equity injection for an SBA 7(a) loan?
- Can a subordinated loan from a private third-party investor count as equity injection for an SBA 7(a) loan?
Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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