Non-Bank SBA Loans

Did you know there are some private or Non-Bank SBA lenders?  While most SBA loans are done with banks, a few entrepreneurial finance companies have found an opportunity to support small businesses through SBA lending.  What is difference between them and a bank?

First of all, they still follow the SBA guidelines and process.  However, because they are privately held, they have more flexibility within the guidelines.  This means a private SBA lender can look at a larger pool of business loan candidates.

For example, a bank’s president might have a blanket policy against exposure to whole industries, limiting that bank’s SBA team.  But the private SBA lender can consider any industry within SBA guidelines.  In fact, most banks shy away from restaurant and retail lending in general, and have put them on the No Loan List due to the Covid Pandemic.  However, not everyone in those industries is failing!

For instance, at Complete Business Capital, we recently helped a small gym successfully purchase commercial real estate during the pandemic.  This gym’s business model and clientele grew while others in the industry shrank!  Yet, no bank would listen to their story just because they were sour on the industry.  However, our private SBA partner investigated, looked at the facts, and approved a $1,000,000 loan because the company (not the industry) was Low Risk!

Non-bank SBA lenders are not only good for businesses, they are good partners for banks.  How can that be?  Aren’t they competitors?  No, they cannot compete with banks primarily because they do not take deposit accounts.  In fact, they are great partners because they can do the “higher risk” loans for a bank to keep customers happy, while the bank keeps the deposit accounts to meet their yearly goals.

If you would like to see if a private SBA loan or partnership would be helpful for you, please reach out to us at Complete Business Capital.  We would love to help.


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