An Insurance Broker in Oklahoma Needed $500K to Expand, We Got Him SBA Funding

The Business

In Oklahoma, a veteran insurance broker built his career serving farmers and ranchers with crop and livestock insurance. He had grown his firm steadily over the years, building strong relationships with clients who relied on him to protect their livelihoods.

Then an opportunity arose that could nearly double the size of his business overnight. A competitor was looking to sell both their office and their insurance book. For the broker, it was the chance to expand quickly, increase market share, and strengthen his firm’s long-term position.

The Challenge

The acquisition required $500,000 in financing. Conventional banks were willing to lend, but only on terms of five to seven years. That short timeline meant higher monthly payments, which would have created pressure on cash flow.

From a bank’s perspective, the deal was also complex. While the purchase would add significantly to the broker’s revenue and profitability, the business being acquired had very few tangible assets to serve as collateral. Without strong collateral, most banks would hesitate to fund the deal, or they would do so on terms that didn’t make sense for sustainable growth.

The broker needed a longer-term loan with affordable monthly payments, and he needed a funding partner who could structure the deal in a way that would satisfy the bank while keeping the acquisition viable.

That’s when he turned to Small Business Funding.

The Solution

We saw immediately that an SBA 7(a) loan would be the right fit. SBA backed business loans offer extended repayment terms and are designed to support acquisitions where conventional financing falls short.

We worked with our SBA lending partner to structure the $500,000 loan with terms that gave the broker room to grow. Instead of five to seven years, the SBA loan allowed repayment over a much longer period, which lowered monthly debt service and eased cash flow concerns.

To overcome the issue of limited collateral in the acquired business, we collaborated with the lender to cross-collateralize assets from the broker’s existing firm. By tying those assets to the new loan, we gave the bank enough security to move forward confidently.

Our role was to manage the process from start to finish, ensuring the lender’s requirements were met while keeping the transaction on track.

The Results

The deal closed successfully, and the broker acquired the competitor’s office and book of business. As a result, he:

• Nearly doubled the size of his firm overnight.
• Expanded market share in crop and livestock insurance across his region.
• Added long-term revenue and profitability with manageable monthly payments.
• Preserved cash flow stability by avoiding the high burden of a short-term loan.

What could have been a deal lost to collateral concerns became a transaction that propelled the business into its next stage of growth.

Customer Confidence

For this insurance broker, the acquisition was more than just growth. It was a strategic move that positioned his firm for the future. With the right loan structure, he didn’t just expand—he did so on terms that supported long-term sustainability.

The SBA process can seem daunting, especially when collateral is limited. But with the right guidance, even complex acquisitions can move forward smoothly. By cross-collateralizing existing assets and structuring the loan correctly, Small Business Funding made the deal possible.

Today, the broker is not only operating a larger firm but also actively pursuing additional acquisitions. His story shows that with the right funding partner, ambitious growth plans can become a reality.