Mca To Sba Transition

MCA to SBA Transition Program

Market Direct Capital helps qualified borrowers move from high-cost merchant cash advances to a stable path toward SBA eligibility. We place an interim real estate secured facility with weekly payments so you can reduce daily pressure, stabilize cash flow, and prepare for a long-term SBA 7(a) or CDC/504 takeout when eligible.

Who this helps

Businesses with stacked MCAs or heavy daily or weekly remittances that strain cash flow. Sponsors who can pledge real estate and need time to clean up credit, organize financials, and document a clear plan.

• Use cases: Payoff or consolidate MCAs, restore working capital, and position for SBA.
• Profile: Owner-operators with revenues and a credible path to repayment.
• Flexibility: Subprime credit, tax liens, and prior bankruptcy considered case by case.

Typical structure

Terms vary by collateral strength, leverage, and overall profile. Common patterns include:

• Term: 6 to 36 months with weekly payments sized to cash flow.
• Security: Real estate secured. First, second, or third position considered case by case.
• Proceeds: Payoff MCAs, cover closing costs, restore operating reserves.
• Documentation: Concise checklist focused on collateral, cash flow, and the transition plan.

What lenders evaluate

Private underwriting focuses on the ability to stabilize now and qualify for SBA later.

• Collateral: Property type, position, equity, and valuation support.
• Cash flow: Revenues, margins, seasonality, and bank activity.
• Debt picture: MCA balances, remittance schedules, and payoff amounts.
• Plan quality: Steps to SBA readiness, timeline, and management follow-through.

Process

We keep the process clear and paced to your timeline.

1. Read-out: Share goals, collateral, MCA statements, and a brief financial snapshot. We confirm fit and next steps.
2. Packaging: Lender-ready summary, payoffs, sources and uses, and cash flow view with weekly payment sizing.
3. Approval: Coordinate diligence, confirm lien position, and finalize structure.
4. Funding: MCA payoffs executed at closing. Weekly payments begin with clear servicing.
5. SBA transition: Prepare documents and benchmarks for 7(a) or CDC/504 submission once stable.

Partner alignment

If you already work with an SBA lender, we can coordinate and hand the file back once SBA ready. If you do not, we can introduce experienced private non-bank SBA partners.

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Related programs

• Working capital for near-term operating needs.
• Real estate bridge loans for acquisition or refinance.
• SBA 7(a) for long-term amortization once eligible.
• CDC/504 for owner-occupied real estate and major equipment.