Hello,
I had introductory calls with 4 lenders about a month ago as I started to look into SBA loans. Two were referred to me by a close friend who owns multiple businesses and two were referred by a business mentor. All 4 have given me meaningful feedback on my situation and advice for next steps.
Now I’m ready to actually get the ball rolling and upload financial docs. At the end of the day, I think getting the best interest rate regardless of who does the loan is the most important thing for me. How do I respectfully shop rates between them? Should I let them know I’m speaking to multiple lenders and it comes down to rates for me?
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You can message me. Depending on the loan amount and the use of proceeds, this will help me give you the best advice.
Hi, SBA lender here. I appreciate when my clients let me know that they have other offers from banks. It gives me an opportunity to address the pricing and see if I can match it. I’m not always competitive when it comes to the rate. A few things to consider in addition to rate. I would say looking at the rate is good, but if getting the lower rate shouldn’t be the determining factor.
Things to Consider
- Are you dealing with a commercial banker or an actual SBA Development Officer? It makes a difference during the closing process.
- Every lender interprets the SBA rules differently. Are they any covenants that each lender is asking for such as a lien on your home, more cash down, annual reporting requirements or required debt service ratios?
- How long does it take for the loan to be approved and when do you get your commitment letter? A typical timeline is 2 weeks for a decision, if the bank has a complete package.
Remember in Goodwill Hunting when Ben Affleck is filling in for Will’s NASA interview? “Retaiiiiiner. RETAINER”.
Just yell that at them with no context. Whoever still gives you $ will be the easiest going to deal with.