Finding an SBA Lender
For many small businesses, SBA lending is one of the best options to grow a business or obtain financing to buy a business. SBA loans are attractive for small business transactions and businesses looking to access capital. This is due to competitive terms, low-interest rates, high loan amounts, and long repayment terms. Below we discuss how to find an SBA lender that meets your small business needs.
Preferred vs Non-preferred Lending Partners
The first thing to determine is whether you wish to work with a preferred vs non-preferred lending partner. Below we discuss the benefits and differences of each SBA lender.
Preferred Lending Partners
SBA lenders with preferred lending partner (PLP) status with the SBA have specific advantages. An SBA preferred lender can approve applications for SBA funding before submitting the application to the SBA. This is due to having a proven track record of successfully processing and servicing SBA guaranteed loans. Other factors to receive the PLP designation include performance, loan volume, and a clear knowledge of SBA policies and procedures.
Working with an SBA preferred lender can save you valuable time in the SBA loan process. An SBA preferred lender can approve the loan directly. This can shorten and simplify the SBA loan application process. A preferred lender may also offer a wide range of SBA loan options and other business resources. This can include resources such as spending trackers, business consulting, and other tools.
Peak Business Valuation, business appraiser, works with preferred lending partners across the country. We are happy to connect you with one in your area or one who services your business industry. Schedule your free consultation today to get started!
Non-preferred SBA Lenders
There are many SBA lenders that may be a good option for your business but don’t have a preferred lender status. The difference for these SBA lenders is that a non-preferred lender sends the SBA loan application to the SBA for approval. This approval can take up to 4 weeks. As such, the lender has less control over the loan and its approval. Depending on your business industry and needs a non-preferred SBA lender can still be a great option.
Peak Business Valuation has connections with hundreds of SBA lenders across the country. Peak specializes in providing SBA business valuations for SBA financing. We are happy to answer any questions you have about SBA financing as well as connect you with SBA lenders in your area or business industry. Get started by scheduling a free consultation.
Local SBA Lenders
Local SBA lenders understand the importance of small businesses in their communities. In addition, local financial institutions are committed to serving and helping grow the local economy. As such, they are more invested in the success of their clients. A local lender can also help clients with quick answers to questions and reduce some of the turnaround time for the SBA loan.
Next, there are many online resources to help you find the best SBA lender for your needs. Below are a few of the options available:
You can also look at the top 100 most active SBA lenders on the SBA website. As well as, Investopedia’s article on the Best SBA Lenders. This article breaks down what and who each lender best services.
SBA Lender’s Niche Market
Last, when finding an SBA lender, it is important to understand what the lender’s niche is. Most SBA lenders have a specific market, target industry, or business need they service. Peak Business Valuation is happy to match your business and its financing needs with the right lender.
Finding an SBA lender that best meets your business needs takes time. However, that time is well paid off in the benefits you receive through SBA financing. For more information on evaluating potential SBA lenders see Choosing an SBA Lender.
Peak Business Valuation, business appraiser, works with SBA lenders across the country. Our wide network of SBA lenders helps small businesses with a variety of business needs. Peak Business Valuation specializes in providing SBA business valuations. We are happy to connect you with an SBA lender(s) that commonly lend to your industry, type of business, or for a specific business need. For questions, schedule a free consultation or reach out via email. Peak is committed to helping individuals build small businesses that thrive.
For more information on SBA financing check out the following articles:
- Advantages of SBA Loans
- Requirements for an SBA Loan
- The SBA Lending Process
- 4 Steps to Obtaining an SBA Loan
- SBA Business Valuations
- Ask These 8 Questions Before Obtaining an SBA Loan
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