Are All SBA Lenders Created Equal?

Different Types of Lenders

The answer is no, not all SBA lenders are created equal. That’s because each lender applies the Small Business Administration’s Standard Operating Procedures manual, also referred to as the SOP, differently.

For example, some lenders have developed internal lending policies that are more stringent than the SOP. These lenders favor prime borrowers which translates to the lowest rates and most favorable terms for the few businesses who qualify.

Other lenders apply the SOP conservatively but their internal lending policies do not reflect a strict application. Therefore, a higher number of applicants qualify but don’t expect especially low rates and favorable terms.

Still, there is another subset of lenders who apply the SBA guidelines liberally but still remain within the SBA’s good graces. These lenders qualify the highest number of applicants but will also offer the highest rates and least favorable terms.

Different Outcomes

Therefore it is likely that an applicant submitting three applications with the same exact information to three different lenders will receive three different rate and term structures.

If this sounds confusing, it is, and that’s where ThinkSBA comes in to save the day. We work with the right lender to obtain the best rates and terms for your unique situation in the least amount of time.

My SBA Loan Pro

The My SBA Loan Pro Podcast is hosted by Your SBA Loan Pro, Ryan Smith. In each episode Ryan provides valuable information and best practices regarding the SBA loan program.

Each episode is approximately one minute in length and addresses topics related specifically to SBA 7(a) and 504 loan programs to purchase real estate, acquire a business or franchise and obtain working capital.

You’re encouraged to listen and subscribe to ensure you’re notified each time a new episode is available. Ryan publishes a new episode weekly on Tuesday mornings, unless he’s kidnapped to a deserted island of course.

You can listen and subscribe on your favorite platforms including Apple Podcasts, Spotify, Google Podcasts, Anchor and Stitcher.