How to Find the Best Lender for an SBA 7a Loan

How to Find the Best Lender for an SBA 7a Loan

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This episode focuses on navigating the process of finding the right fit for an SBA 7a loan request. Beau emphasizes the importance of understanding different types of lenders and their underwriting processes, such as direct lenders [also called the Preferred Lenders Program (PLP)] who underwrite in-house and non-delegated lenders who send the file to the SBA. Determining if a lender follows the SBA guidelines or has additional requirements that may affect the loan request is crucial.

Commercial mortgage advisors like Beau act as guides in the SBA loan process, assisting in putting together the loan package, assessing the strengths and weaknesses of the deal, and finding the best lender or partner for the specific situation. Various caveats exist within SBA lending, such as lenders' preferences regarding industry verticals, collateral requirements, and equity injections. It is advisable to work with an advisor who understands the appetite of each lender, as different lenders may have different criteria for approving loans.

Beau also discusses the opportunity to structure deals with low to no money out-of-pocket, leveraging options like seller carry-backs, investor partnerships, and equity injections. He highlights the importance of finding off-market deals and suggests that retirees and small business owners looking to sell may offer potential opportunities for acquisitions.

In summary, this episode of the podcast provides insights into navigating the SBA loan process, understanding different types of lenders, and finding the best fit for a loan request while considering various caveats and structuring options.

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Timestamps:
(00:11) – How to find the right fit for your SBA loan request
(00:47) - Understanding different types of lenders and their underwriting process
(01:03) - Additional requirements and lender preferences
(01:25) - Commercial mortgage advisors as the quarterback in the SBA loan process
(01:49) - Caveats within SBA and examples
(02:15) - Book an initial call at http://bookwithbeau.com/ and deep dive into loan requests.
(02:39) - Importance of seller's tax returns and interim statements in business acquisition
(02:55) - Financing up to 90% of the total project cost in business acquisition
(03:30) - Deal structuring and leverage considerations
(03:54) - Collateral shortfall and its impact on SBA loans
(04:38) - Real estate involvement and options for longer fixed-rate terms
(04:58) - Importance of working with a commercial mortgage advisor
(05:07) - Understanding the appetite of each lender and their preferences
(05:48) - Specific considerations for franchise startups and business startups
(06:16) - Navigating the SBA process and value of advisors
(07:12) - Providing information and content to help with loan situations
(07:28) - Importance of financing and leverage in ventures
(07:47) - Structuring deals with low to no money out of pocket
(08:08) - Opportunities in acquiring small businesses from retiring owners
(08:43) - Importance of finding off-market deals and sources

💥 Thanks for watching 💥
#SBA7a #SBAloanrequest #SmallBusinessAdministration

About Beau: Beau Eckstein is a real estate entrepreneur, TV personality, and commercial mortgage advisor, specializing in construction financing and multi-family lending.

🎥 The video interviews we do on IFP will help you scale your real estate business and learn how to finance all your projects.

About the Channel: Want to structure your investments in the right and secure way?

Learn great insights and make the right decisions through the Investor Financing Podcast hosted by Beau Eckstein.