SBA Lenders, SBA Banks

Its worthwhile to note that almost every deal we close, has been declined by at least 5 other SBA banks.

Closing of SBA 7a Loan Howell, Michigan

SBA Bank Loan 2009 Closing Office Building, Dallas Tx

2009, New Build, Closed SBA Bank Loan, Buford, GA

SBA lenders and SBA banks are quarky, niche players.  Most real SBA banks/SBA lenders only do SBA loans and rarely do anything else.   Likewise, most conventional banks don't dabble in SBA loans as it's cumbersome and expensive for them to offer these loans as the amount of reporting and direct costs to the SBA, for the banks, are high.

Also, there is a steep learning curve for most banks that are attempting to process, underwrite and close their first few hundred loans with the Small Business Administration.  There is a complicated process for new lenders to adhere to, and not underwriting the file properly, could result in a closed loan, WITHOUT the SBA guarantee.  Which is a very bad position for banks to be in.    

SBA Lenders and SBA Banks

In addition, there are different credentials that banks earn by their performance with the SBA.  All new banks have to have their loan underwritten a second time by the SBA staff to make sure it was done properly.  As you can imagine, having to go through the banks underwriting department, than through the SBA's is a huge waste of time for you.  This can easily double the underwriting process.  Bottomline, you need to work with the right  SBA lenders, that have the best credentials and therefore your loan will only have to be underwriten once. 

SBA Lenders Are NOT Created Equally

There is a WIDE range of what one seasoned SBA lender will consider "fundable" versus another.  Think of it this way, almost every transaction we close has been declined by at least 5 other banks...

What separates one bank from the next is often their adversion to risk.  Or, sometimes they know a certain business category better than others, so they are able to get past issues that other banks can not.  That's why you see some banks focus on categories like hotel loans or restaurant loans, etc.  Or, their underwriting guidelines are different.  This can get very technical, but for example, some SBA lenders will have set minimum personal expense standards.  No matter what your lifestyle and even if you have no personal expenses, they say you spend $50,000 per year, for underwriting.  Others will, for example, double personal expenses that show up on the borrowers credit report.  Some will increase the personal expenses by a set amount, say $20,000 per year. 

The point is that 10 SBA banks or lenders can look at the same request and come up with their own different conclusions on the file.  So, if your business is doing ok, you can probably find a bank or lender that will fund your request.  The trick of course is finding them, and presenting/packaging your loan request in the most favorable way, and sending it to the right person at the bank.

What we do is SBA business loans from $250,000 and up.  We do both SBA 7a and SBA 504 loans.  Most of our transactionshave commercial real estate as the collateral.  But we often roll into these loans, equipment, working capital, debt consolidation, and good will.   No start ups at this time, except for Doctors.  Call us to see if we can help or file out the pre approval form below and we will get back to you immediately.  

248 885-8797