Matthias Smith's Linkedin Analytics

Honored to be quoted in Forbes alongside Eric B. Pacifici of SMB Law Group LLP on one of the most pressing issues in small business M&A today: how new SBA rules on seller equity retention are threatening deal flow. Under the updated SBA guidelines, sellers who retain even a small pro-rata equity stake are being asked to personally guarantee 100% of the SBA loan—regardless of how little ownership they keep. That’s not just impractical—it’s a deal killer. Imagine Bob, a 75-year-old HVAC business owner who’s selling his company to retire. He’s also the only license qualifier for the firm. There’s no way he’s signing a $5 million personal guarantee so a recent MBA can buy his business. A more reasonable approach? Have the seller guarantee only their pro-rata share of the SBA loan based on their retained equity—just like any rational risk allocation model would suggest. The current policy is deterring sellers from staying involved post-close, when buyers need them the most for licensing, knowledge transfer, and operational continuity. Full article in the comments below

As of today, Pioneer Capital Advisory LLC turns three years old—and I couldn’t be prouder of the team we’re building. We’ve had the privilege of working with 87 business buyers to navigate the SBA financing process and close deals that change lives. Behind each one of those transactions is a team of heavy hitters—people who care deeply, execute relentlessly, and bring institutional-grade rigor to the lower middle market. Looking back on the last three years, I’m filled with gratitude. What started as an idea born on a trip to Greece is now a firm that punches far above its weight. And as the SBA lending environment continues to evolve, we’re evolving right alongside it—refining our process, deepening lender relationships, and adapting to the realities of today’s dealmaking landscape. This is just the beginning. I’m excited for what the next 30 years will bring. To my team—thank you. To our clients—thank you. And to anyone wondering if it’s possible to build something meaningful in a changing market—the answer is yes. Here’s to year four.

Another SBA deal approved for a client of Pioneer Capital Advisory LLC (a few days ago) 🚀 We’re excited to share that one of our clients recently secured a $1,050,000 SBA 7(a) loan through Veritex Community Bank to acquire and grow a technology business focused on back-office automation and workflow efficiency. This transaction will help the buyer streamline operations, scale the platform, and continue driving value for small business customers nationwide. Grateful to our team for managing the financing process end to end and to Veritex for their thoughtful partnership. If you’re acquiring a business and want financing support that moves quickly and gets deals closed—let’s talk — matthias@pioneercap.com cc: Nick Swanda

I’m looking to connect with sell side business brokers in major markets (Orlando, Dallas, Atlanta, Los Angeles, Chicago, Seattle, etc) that are looking for well capitalized buyers to purchase their listings On a weekly basis at Pioneer Capital Advisory LLC, I speak with buyers from everyone with $100k of liquidity to upwards of $1 million of liquidity As the business buying process takes a long time, if there are brokers looking for high quality buyers looking to save time with tire kickers, I’d be happy to put your listings in front of the buyers in my network that Pioneer Capital Advisory LLC is actively working with Please feel free to reach out to me directly via email at matthias@pioneercap.com

Never underestimate the compounding effect of working with positive hardworking people It multiplies every ounce of effort that you put into business

Day 1 of the SBA’s NAAGL conference here in Salt Lake City getting updates on changes to the 7(a) loan program Will be writing takeaways from the conference in my newsletter that will air next week Tuesday morning (link in comments to subscribe)

One word of advice to business buyers is to not go cheap on either M&A legal or financial due diligence I have yet to have one client that’s closed on a deal complain about the cost of either, but I’ve heard horror stories on the famous podcasts like Acquiring Minds of folks that missed on financial due diligence and ended up with a disaster on their hands One thing to keep in mind - if you’re using SBA financing, both of these can ultimately be credited towards your down payment

If you are buying a business in 2025 using SBA financing, plan to be in the trenches (boots on the ground) at the business Banks and the SBA both hate passive ownership

Not every deal in the M&A space closes Nick’s deal was one such deal He stuck to hit guns and battled to the end When it was time to put the white flag up, he stuck to his guns and did the right thing This is the type of client I will always support at Pioneer Capital Advisory LLC Zero revenue was generated, but he saved himself from a bad deal and made the best decision for himself and his family

Many business brokers appear to be detached from reality on listing price multiples Seeing lots of CIMs where the multiple is north of 5x for earnings ~ $750k I understand that sell side brokers have a duty to obtain the highest sale price for their client but there is a substantial difference between reality and being on Mars

I’m pleased to share that a client working with Pioneer Capital Advisory LLC has officially closed on the acquisition of a company in the bakery equipment sector. The transaction was financed with a ~$3.85 million SBA 7(a) loan and a $300,000 SBA Express line of credit, with Huntington National Bank serving as the lender. Thank you Sarab Singh and Valerie Stash for making this client’s dream of buying a business a tangible reality If you’re a business buyer currently under LOI—or nearing LOI—with an SBA 7(a) financing need of $1 million or more, feel free to reach out. My team and I would be happy to support you in navigating the SBA financing process. You can connect with me at matthias@pioneercap.com.

I’m excited to announce that a Pioneer Capital Advisory LLC client has successfully closed on the acquisition of an asphalt striping business with a $3.925 million SBA 7(a) loan Financing was provided by Truliant Federal Credit Union (Ryan Collins) I’m super happy for this client and the outcome that this acquisition will achieve for himself and his family If you are a business buyer with a deal at or close to the LOI stage and need SBA 7(a) financing of $1 million or above, please feel free to reach out to me via email to matthias@pioneercap.com

Masterclass on SBA lending data and defaults at day 2 of NAAGL from Brett Caines I hadn’t met him in person before this conference but I came away fundementally impressed with how much of a wealth of knowledge he is

It was great spending a handful of days in person with my team at Pioneer Capital Advisory LLC these last several days doing team building and corporate strategy It’s been an incredible ~ 5 months together with this team and I’m looking forward to what lies ahead for the rest of 2025

Effective immediately, Pioneer Capital Advisory LLC will not participate in any deals where the trailing twelve-month (TTM) or year-to-date (YTD) debt service coverage ratio (DSCR) is below 1.25. We’re committed to supporting healthy, financeable transactions—and a DSCR below 1.25 typically signals elevated risk that does not align with SBA underwriting standards.

If you’re an independent sponsor working on a strong deal needing equity around $350K, you should be talking with the Minds Capital team (Will Smith, Niklas James & Max Lummis, CPA, CVA, CFE) These are super sharp folks that really understand the independent sponsor model very well Value-add investors rather than simply financial investors

Pioneer Capital Advisory LLC in person strategic planning summit in Mexico City Great to meet the team in person and brainstorm It’s exciting to work alongside hardworking folks that are helping the next generation of small business buyers with achieving the American Dream 🦅🇺🇸

I am on a mission to build the top SBA loan brokerage firm in the United States dedicated to helping business buyers achieve the American Dream We’re assembling a group of highly talented folks that are going to do precisely that If you’re a business buyer looking to purchase a small to medium sized business, the folks in this picture are willing to run through a brick wall to help you achieve a successful financing process

SBA Default Rates Are Rising—And the Implications Run Deeper Than Headlines Suggest I returned this week from the SBA lending conference in Salt Lake City, where new data presented on loan performance was both sobering and instructive. Simply put: defaults on SBA 7(a) loans are rising at a pace not seen in over a decade. And the risk is most acute in loans originated over the past 18–24 months. ✔️ The velocity of defaults is accelerating. Loans originated in 2023–2024 have reached a 4.7% annualized default rate—within the first 12–18 months of performance. Historically, that level of deterioration took 3–5 years to materialize. ✔️ The post-COVID default lull was temporary. From 2020 through 2022, pandemic stimulus and borrower relief programs masked underlying credit risk. That buffer has now dissipated, and the market is recalibrating accordingly. ✔️ The pain is concentrated in “established” businesses, not startups. Loans under $350K to existing businesses—not new ventures—experienced the highest default rates in 2024. That runs counter to conventional assumptions and should reframe how we evaluate perceived risk. ✔️ Rising rates are exposing structural weaknesses. While the Prime Rate is a contributing factor, it’s not the root cause. Defaults are being driven by inadequate working capital, tight post-close liquidity, and overly optimistic operating projections. Here’s where I stand: Even as an SBA loan broker, my north star is client success—not just loan approvals. A closed deal is not a win if the capital stack can’t sustain 18–24 months of real-world volatility. I’ve been deliberately pressing clients to scrutinize their capitalization strategies—hard. Not just on total leverage, but on structure, liquidity, and flexibility. Working capital isn’t a line item—it’s the difference between solvency and distress. If you’re in the process of acquiring a business, this is the time to raise your standard of underwriting. Relying on legacy assumptions from the 2021–2022 environment could prove costly. The next chapter of SBA lending will reward buyers who lead with resilience—not just ambition. Let’s keep this dialogue open. There’s nuance here that deserves more airtime than it’s currently getting.

The best advice I can offer to anyone buying a business? Be a normal person. It might sound simple, but it’s often overlooked. Sellers aren’t looking to hand their business over to someone who immediately starts talking about slashing costs, firing longtime employees like Martha—who may not be up to speed on Windows updates—and flipping the company in five years to chase an exit. Be thoughtful. Be respectful. Understand that this is often someone’s life’s work. Approach it accordingly.