Hey, everyone!

I'm trying to determine how to make the decision between a bank loan or raising (additional) money from investors for an expansion for an event space that will be connected to our production brewery and tap room. Illinois law won't allow us to create a new LLC for the event space, so any capital raise/debt would affect original investors' shares. In our particular case, we had one round of raising capital from private investors. We also have an SBA loan.

Nothing in our PPM prevents another round, but we would be diluting shares of the original investors. We could add more debt, but there are more strings tied to working with construction loan, and making additional monthly loan payments will push any profit distributions further down the road.

Any advice or best practices as to how to make the decision? Oh, our general contractor is interested in trading the build-out for equity....