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Who are your go to SBA lenders? Both for 7a and bolt programs

[Olderguy]

You can't say....there are many different lenders and they offer different programs and service levels. Some 7A and some 504.

I probably have 4 - 6 I use.

Commissions range from 1 point to 3.75%.

Credit Bench for Bolt.

[Kevin Henry-Seacoast]

Who are your go to SBA lenders? Both for 7a and bolt programs

Do some research on Coleman Report's website. There are a host of resources regarding SBA lenders.

[Kevin Henry-Seacoast]

Do some research on Coleman Report's website. There are a host of resources regarding SBA lenders.

SBALenders.com also has some research

[Olderguy]

In all honesty I would not recommend a shot in the dark approach like this for SBA loans. I would recommend working with someone who has done a lot of SBA loans and has experience with several lenders and accept that guidance and experience to get a SBA loan to the finish line. I would NOT recommend anyone inexperienced to try a direct route. There is a reason brokers and merhants call me and claim "SBA loans take too long and never get funded". It is way too complex to try this on your own but it's your choice.

Ask yourself - would you send all of your MCA deals to just one MCA lender?

Same philosophy applies.

[Kevin Henry-Seacoast]

I bet most of the SBA business development people on the list of the top10 SBA lenders welcomes new brokers as referral sources One in the top 5 I know certainly does and in fact has regular classes for referral sources and research they offer to their referral sources.

[Olderguy]

You are missing the pont.

SBA lender A will only pay off two MCA's and not to exceed $250,000 total
However they are absolutely professional, handle the file quickly and are very communicative.

SBA lender B will pay off multiple MCA's and are not limited to $250,000
However this lender's customer service is almost non existant.
They dont' respond to phone calls, voice mails or emails.

[Kevin Henry-Seacoast]

You are missing my point: I don't do SBA loans, but the product is active within my organization and other institutions I know extremely well. The business development professionals I know internally and externally welcome new business and are very responsive. I have referred centers of influence I know that inquired about the product and have never been disappointed internally or externally. In a highly competitive environment, the good people at good firms are highly responsive and welcome new business. Stating that business development professionals at good firms are non-responsive in this market makes absolutely ZERO sense.

[Olderguy]

You are missing my point: I don't do SBA loans, but the product is active within my organization and other institutions I know extremely well. The business development professionals I know internally and externally welcome new business and are very responsive. I have referred centers of influence I know that inquired about the product and have never been disappointed internally or externally. In a highly competitive environment, the good people at good firms are highly responsive and welcome new business. Stating that business development professionals at good firms are non-responsive in this market makes absolutely ZERO sense.

I think my experience might suggest otherwise.

Some SBA lenders pay 2 points in the loan and 1 point referral fee. Some pay 1 3/4 referral fee. Some only pay 1 point referral fee and no broker fee on some programs. Some only pay 2 points and no referral fee.

If the broker whats to chase going direct to a SBA lender, that's their choice. Referring them to that direction without any experience, in my opinion, is going down the rabbit hole.

I have had more than one broker send me a declined SBA file that I have been able to get approved and funded.

So let's just agree to disagree and move on.

[FlexibleCapitalSolutions]

You are missing the pont.

SBA lender A will only pay off two MCA's and not to exceed $250,000 total
However they are absolutely professional, handle the file quickly and are very communicative.

SBA lender B will pay off multiple MCA's and are not limited to $250,000
However this lender's customer service is almost non existant.
They dont' respond to phone calls, voice mails or emails.

Steve, with all due respect to you, I know that you are a senior member here at DF, but we are all lucky that Kevin Henry, VP-Business Development, at Seacoast Business Funding, a division of Seacoast Bank provides us with responses and shares his knowledge with us. It is my understanding that Seacoast Business Funding, a division of Seacoast Bank, was in dire straits since Mr Henry's previous departure and it is now back well on its way to becoming the powerhouse that it use to be under his previous tenure. My wife wakes up every morning and checks Mr Henry's profile to see if there have been any new posts and then we discuss all of his input and insights at the dinner table every night. Whenever I make decisions, i always ask myself what would Mr Henry do?

Instead of arguing with him, I would instead suggest saying thank you and reflecting on why you are wrong and he is right. Just my opinion.

[Olderguy]

Steve, with all due respect to you, I know that you are a senior member here at DF, but we are all lucky that Kevin Henry, VP-Business Development, at Seacoast Business Funding, a division of Seacoast Bank provides us with responses and shares his knowledge with us. It is my understanding that Seacoast Business Funding, a division of Seacoast Bank, was in dire straits since Mr Henry's previous departure and it is now back well on its way to becoming the powerhouse that it use to be under his previous tenure. My wife wakes up every morning and checks Mr Henry's profile to see if there have been any new posts and then we discuss all of his input and insights at the dinner table every night. Whenever I make decisions, i always ask myself what would Mr Henry do?

Instead of arguing with him, I would instead suggest saying thank you and reflecting on why you are wrong and he is right. Just my opinion.

A bank is not a non bank lender and I respect his opinion but in this case I think my experience trumps his opinion. I think I have broken down some of the issues a non experienced broker will have trying to go direct with no experience.

But Ok....I agree there are SBA lenders that can assist a broker into that platform and guide them. And it's up to the broker to decide.

And think on this - why spend all your time and energy on a file that only pays 2% when you can be pumping out MCA deals and have someone else who is more experienced work the file and just spit the fee? Doesn't that seem more financialiy sound for a broker shop?


And here's an example of getting a SBA approval that was denied by the lender, to the broker who sent it to me. Yes, I've posted this before:

Here's what the broker submitted to his SBA bank:

Covid has had very little impact on our business. During the height of the pandemic, we did some deep sanitizing which was a profit center. Except for the hassles of dealing with contractors getting sick and having to deal with scheduling, operations have remained stable.

We are currently billing 103 different clients. We operate as a contract cleaning company. This simply means that we have contracts and are billing one time per month for services. Cleaning schedules range from 1 service monthly to 365 day per year service.

We are simply looking to consolidate the debt that we currently have. This will give us the flexibility to pursue additional contracts and continue expansion. We are currently bidding 5 different contracts. One of the contracts will be approximately $2600.00 per Month. Three of the proposals are small accounts that would be $275- $400 per month. If we can come to terms, one of the contracts would total $22000.00 per month. These are the contracts that I need financial flexibility to pursue. Our largest current contract is about $5900.00 per Month. One as large as $22000, will require me to lay out about $15000 before receiving the first check.

HERE'S WHAT I SUBMITTED:

We are seeking $350,000 in SBA 7A financing to:

A. Consolidate business debt and reduce debt payments
B. Obtain working capital to service current bids that are pending awaiting capitalization.

We want to pay off $178,00 in 4 high interest business loans that have a monthly expense of $17,373. A SBA 7A at 6% will reduce this to $1,980 a month = saving us $15,393 a month. Note: We have several vehicles that are required for this industry - debt which is separate on the balance sheet and form 2202.

We are in the process of submitting bids for several new clients. We need $150,000 in additional working capital for labor/materials/overhead to service this new business.

Client A $275 a month
Client B $400 a month
Client C $22,000 a month
Client D $2,600 a month
Client E $300 a month

Total new business bids: $25,5475 a month projected increase in revenue

We are currently billing 103 different clients operating as a contract cleaning company. Covid has had very little impact on our business. During the height of the pandemic, we were performing deep sanitizing so operations grew in sales and net income.

Total revenue for 2021: $1,025,000
Net income: 126,854
Depreciation: 51,500
Net income w/o deprec. 178,354

Total revenue for 2020: $761,109
Net income (437)
Depreciation: 138,672
Net income w/o deprec. 138,235

Total revenue for 2019: $461,435
Net income: 12,825
Deprec: 104,591
Net income w/o deprec 117,416

We have two SFR real estate properties and 1 ten acre of land with equity in all to collateralize this loan.

Fico is a bit below 660 due to a recent purchase of several trucks and use of company credit card equity to help some employees.

File was denied by a bank SBA lender due to DTI issue but the submission combined vehicles with business loans.

We received an approval for $350,000 but after underwriting, got final at $250,000. However my lender said after 2 - 3 months of payment history, they would give him another $100,000 for a total of $350,000 under the SBA 7A.

The file wasn't packaged and submitted correctly. And maybe Kevin is right, a more professional SBA lender may have corrected and submitted this.

So use your judgment and act according to your feelings on the matter reviewing the facts and the kind of relationship you might develop with a lender that may work.

[Kevin Henry-Seacoast]

Steve, with all due respect to you, I know that you are a senior member here at DF, but we are all lucky that Kevin Henry, VP-Business Development, at Seacoast Business Funding, a division of Seacoast Bank provides us with responses and shares his knowledge with us. It is my understanding that Seacoast Business Funding, a division of Seacoast Bank, was in dire straits since Mr Henry's previous departure and it is now back well on its way to becoming the powerhouse that it use to be under his previous tenure. My wife wakes up every morning and checks Mr Henry's profile to see if there have been any new posts and then we discuss all of his input and insights at the dinner table every night. Whenever I make decisions, i always ask myself what would Mr Henry do?

Instead of arguing with him, I would instead suggest saying thank you and reflecting on why you are wrong and he is right. Just my opinion.

Thanks for the comments. The bank and the group were not in dire straights when I left 3 years ago. Very health institution and great team, hence why I made a decision to return.

[Zonefund]

A bank is not a non bank lender and I respect his opinion but in this case I think my experience trumps his opinion. I think I have broken down some of the issues a non experienced broker will have trying to go direct with no experience.

But Ok....I agree there are SBA lenders that can assist a broker into that platform and guide them. And it's up to the broker to decide.

And think on this - why spend all your time and energy on a file that only pays 2% when you can be pumping out MCA deals and have someone else who is more experienced work the file and just spit the fee? Doesn't that seem more financialiy sound for a broker shop?


And here's an example of getting a SBA approval that was denied by the lender, to the broker who sent it to me. Yes, I've posted this before:

Here's what the broker submitted to his SBA bank:

Covid has had very little impact on our business. During the height of the pandemic, we did some deep sanitizing which was a profit center. Except for the hassles of dealing with contractors getting sick and having to deal with scheduling, operations have remained stable.

We are currently billing 103 different clients. We operate as a contract cleaning company. This simply means that we have contracts and are billing one time per month for services. Cleaning schedules range from 1 service monthly to 365 day per year service.

We are simply looking to consolidate the debt that we currently have. This will give us the flexibility to pursue additional contracts and continue expansion. We are currently bidding 5 different contracts. One of the contracts will be approximately $2600.00 per Month. Three of the proposals are small accounts that would be $275- $400 per month. If we can come to terms, one of the contracts would total $22000.00 per month. These are the contracts that I need financial flexibility to pursue. Our largest current contract is about $5900.00 per Month. One as large as $22000, will require me to lay out about $15000 before receiving the first check.

HERE'S WHAT I SUBMITTED:

We are seeking $350,000 in SBA 7A financing to:

A. Consolidate business debt and reduce debt payments
B. Obtain working capital to service current bids that are pending awaiting capitalization.

We want to pay off $178,00 in 4 high interest business loans that have a monthly expense of $17,373. A SBA 7A at 6% will reduce this to $1,980 a month = saving us $15,393 a month. Note: We have several vehicles that are required for this industry - debt which is separate on the balance sheet and form 2202.

We are in the process of submitting bids for several new clients. We need $150,000 in additional working capital for labor/materials/overhead to service this new business.

Client A $275 a month
Client B $400 a month
Client C $22,000 a month
Client D $2,600 a month
Client E $300 a month

Total new business bids: $25,5475 a month projected increase in revenue

We are currently billing 103 different clients operating as a contract cleaning company. Covid has had very little impact on our business. During the height of the pandemic, we were performing deep sanitizing so operations grew in sales and net income.

Total revenue for 2021: $1,025,000
Net income: 126,854
Depreciation: 51,500
Net income w/o deprec. 178,354

Total revenue for 2020: $761,109
Net income (437)
Depreciation: 138,672
Net income w/o deprec. 138,235

Total revenue for 2019: $461,435
Net income: 12,825
Deprec: 104,591
Net income w/o deprec 117,416

We have two SFR real estate properties and 1 ten acre of land with equity in all to collateralize this loan.

Fico is a bit below 660 due to a recent purchase of several trucks and use of company credit card equity to help some employees.

File was denied by a bank SBA lender due to DTI issue but the submission combined vehicles with business loans.

We received an approval for $350,000 but after underwriting, got final at $250,000. However my lender said after 2 - 3 months of payment history, they would give him another $100,000 for a total of $350,000 under the SBA 7A.

The file wasn't packaged and submitted correctly. And maybe Kevin is right, a more professional SBA lender may have corrected and submitted this.

So use your judgment and act according to your feelings on the matter reviewing the facts and the kind of relationship you might develop with a lender that may work.

In 2015 or 2016 you posted here acting like a DIRECT LENDER for mcas and term loans.

Post:

https://dailyfunder.com/showthread.p...-direct-lender

You got banned. Then you somehow got unbanned by admin and began soliciting broker business for sbas. You've showed your deceptive side in the past, but you seem to have changed. But, at least, you're honest and pay brokers.

I dont think you should even talk back to Kevin and say you have more experience in the sba realm. You look like an idiot Steve. You've been doing sbas for what, 3 or 4 years?

[Olderguy]

Bro....I have more experience doing SBA loans and I think I made it perfectly clear.

And yes I worked for a direct lender for 5 years, and also he was also doing MCA's (and I did the SBA. term loans, etc). The owner choose not to be on this site and give license information - his choice not mine.

I have helped a lot of brokers and suggesting they go direct for SBA loans, IMHO is not a good use of their time, resources and very limited experience.

Can we say enough said about this stuff....

[Zonefund]

Bro....I have more experience doing SBA loans and I think I made it perfectly clear.

And yes I worked for a direct lender for 5 years, and also he was also doing MCA's (and I did the SBA. term loans, etc). The owner choose not to be on this site and give license information - his choice not mine.

I have helped a lot of brokers and suggesting they go direct for SBA loans, IMHO is not a good use of their time, resources and very limited experience.

Can we say enough said about this stuff....

Dude you're so full of spit. Your linkedin states Aug 2015 to march 2021 you were a senior loan officer at a company that you can't name. That is "confidential" as a loan officer. That's complete bull****. That's the same time period when you solicited business here as a "direct lender". Why? Look at the old post I posted that got you banned, and the job as a senior loan officer on your linkedin. It's offering the same bull**** hybrid loans product. No funder offers term loans, hybrid loans, and mcas. You were obviously a deceptive iso who got banned here for posing as a lender. And I retract my statement it seems you are still deceptive in regards to being full of **** since you just stated that you worked for a direct lender for 5 years, which is in fact bs.

[Olderguy]

You don't contrribute any constructive resources with your blather. So put me on your ignore list please. There are plenty of people on this site that can verify my experience and credentials.

[Zonefund]

You don't contrribute any constructive resources with your blather. So put me on your ignore list please. There are plenty of people on this site that can verify my experience and credentials.

You're trying to check Kevin a man of integrity with a solid rep in the abl space. You're just a liar, bro.

[Olderguy]

You're trying to check Kevin a man of integrity with a solid rep in the abl space. You're just a liar, bro.

You are so very much mis-informed. Hybrid loans that we offered as a direct lender were a cross combination of a term loan and had nothing to do with Kevin.

I am here to help brokers and merchants look for alternative financing away from MCA high cost product as many who have reached out to me have learned.

Lastly, if you can't figure out how to gently be kind, figure out how to kindly be quiet.

[Olderguy]

Here is some more information that may help you understand SBA loans and options:


SBA banks vs. non bank SBA lenders

I'd like to highlight some differences in SBA loans and lenders. Most of you have experience with SBA banks. However you should start looking into non-bank lenders for your SBA loans. Non bank SBA lenders are more flexible in their underwriting.

Non-Bank Lenders

An SBA non-bank lender is a financial institution that does not accept customer deposits. Their sole reason for existing is to lend money to eligible small businesses in their community.

On the other hand, a bank is a financial institution that solicits monetary deposits from their customers and in turn loans these funds to other customers such as individuals and businesses seeking capital for a variety of reasons including starting or expanding a business.

Banks solicit deposits from their customers for two reasons: Number one to meet the Federal Reserve’s capital reserve requirements to ensure satisfactory liquidity levels and number two because deposited funds in a demand deposit account, or what is commonly referred to as a checking account, are the lowest cost of funds.

Government Regulation

Due to increased government regulatory oversight it is typically more difficult to qualify for a small business loan from a traditional bank than it is from an SBA non-bank lender.

Therefore, seeking capital from an SBA non-bank lender may be to your advantage due to the fact that non-bank lenders typically possess less stringent underwriting guidelines and do not require you to move your deposit relationship to them; which is time consuming and sometimes undesirable if you particularly like your depository institution.


A non bank SBA lender will allow you to collateralize business and personal assets. A SBA bank will need to collateralize commercial property.

Some examples I've seen and done. I got a guy in Hawaii $350,000 SBA 7A putting a third UCC on his primary residence for collateral as he leased his office and warehouse.

I saw a company get a $2M SBA loan collateralizing all of their $10M equipment in Brazil.

Typically a SBA bank might require 3 years management experience in buying a business where I've seen a non bank lender require only one year experience.

I have approvals require collateralize all of a clients vehicles. I was able to go back to the credit committee/underwriting and have them release the requirement for liens on the vehicles and maintain the same approval.

I have done a lot of these loans and many brokers have reached out to me with their frustration doing SBA loans. Yes you do need to do some financial analysis when reviewing the package. And it helps to have the merchant connect you with their accountant or bookkeeper for documentation needed.

[Kevin Henry-Seacoast]

Yes-Non-Banks can be more flexible and sometimes faster than traditional banks, but not in all cased. Most of the top non-bank SBA lenders are NOT depository institution, but borrow money FROM traditional banks. Most of the top non-bank SBA lenders in the US borrow money from large banks nd super regional banks. Same guys for other NON-BANK finance companies like factors. They also borrow money from bank. That being said, non-banks have rules too......

[Incbiz440]

Here is some more information that may help you understand SBA loans and options:


SBA banks vs. non bank SBA lenders

I'd like to highlight some differences in SBA loans and lenders. Most of you have experience with SBA banks. However you should start looking into non-bank lenders for your SBA loans. Non bank SBA lenders are more flexible in their underwriting.

Non-Bank Lenders

An SBA non-bank lender is a financial institution that does not accept customer deposits. Their sole reason for existing is to lend money to eligible small businesses in their community.

On the other hand, a bank is a financial institution that solicits monetary deposits from their customers and in turn loans these funds to other customers such as individuals and businesses seeking capital for a variety of reasons including starting or expanding a business.

Banks solicit deposits from their customers for two reasons: Number one to meet the Federal Reserve’s capital reserve requirements to ensure satisfactory liquidity levels and number two because deposited funds in a demand deposit account, or what is commonly referred to as a checking account, are the lowest cost of funds.

Government Regulation

Due to increased government regulatory oversight it is typically more difficult to qualify for a small business loan from a traditional bank than it is from an SBA non-bank lender.

Therefore, seeking capital from an SBA non-bank lender may be to your advantage due to the fact that non-bank lenders typically possess less stringent underwriting guidelines and do not require you to move your deposit relationship to them; which is time consuming and sometimes undesirable if you particularly like your depository institution.


A non bank SBA lender will allow you to collateralize business and personal assets. A SBA bank will need to collateralize commercial property.

Some examples I've seen and done. I got a guy in Hawaii $350,000 SBA 7A putting a third UCC on his primary residence for collateral as he leased his office and warehouse.

I saw a company get a $2M SBA loan collateralizing all of their $10M equipment in Brazil.

Typically a SBA bank might require 3 years management experience in buying a business where I've seen a non bank lender require only one year experience.

I have approvals require collateralize all of a clients vehicles. I was able to go back to the credit committee/underwriting and have them release the requirement for liens on the vehicles and maintain the same approval.

I have done a lot of these loans and many brokers have reached out to me with their frustration doing SBA loans. Yes you do need to do some financial analysis when reviewing the package. And it helps to have the merchant connect you with their accountant or bookkeeper for documentation needed.

Since when did banks doing SBA loans not use personal collateral? How many people have liens on their residence from a bank SBA deal?

Source: Me, who did SBA loans at a bank