[RichardGerard]

Morning David..

Banks do real term loans. Most recent approval: Midwest Health Cycle Studio 100k 60 months- Prime + 1.75% (5%).

Bear in mind that since the interest rates are low- in many instances the banks themselves will not pay intermediaries (or pay very little). When this is the case clients agree to a success fee upon acceptance and the transaction funding.

On this thread it is mentioned that SBA 7A loans are available to qualified merchants. Which is true. The key is understanding which lender can expedite the file, and which lender has an appetite to deploy capital given the circumstances(credit, collateral- or lack of it, use of funds, industry type etc.). PLEASE NOTE: SBA IS SUBPRIME -and knowing whether or not the bank you are working with is a preferred lender provider can add substantial time for deals to close.

Banks are constantly soliciting our firm to send them deals- this gives us leverage to get them approved so that we can send them more. Business Development Officers at banks get a substantial amount of their earnings from closed deals. What they don't want however is for Brokers to send them deals without merit and without Tax returns and Financials that speak to their ask. That is just a waste of their time and subsequently the file gets shoved to the bottom of the pile.

As a Broker if this is external of your focus and time I suggest aligning with people that specialize in this. Making sure the submission is packaged right is a huge part of the process. These take time but are seeds to go along with your immediate Working Capital Pipeline.

Feel free to reach out:

richard@bccusa.com

[Yankeeman07]

Richard - You found a bank that would extend a $100K Term Loan - that is a rare find.
Good for you.

I receive referrals from bankers @ WF, Chase since their banks will not even look at the paperwork for any loan
amount under $500K .

SBA 7(a) is NOT sub-prime (Not sure how you decided SBA was (SUB PRIME) - but I work with 2 Banks that are listed in the Top 100 of SBA Active Lenders and they are not looking or even accepting sub-prime deals.

https://www.sba.gov/partners/lenders...sba-7a-lenders

SBA Loan Eligibility:

https://www.sba.gov/funding-programs/loans/7a-loans


SBA and (expedite) is a misnomer in the SBA Loan World - typical closing are 45 days with Short Form Loans - 60+ plus with 7(a) over $500K.
Biggest delay is waiting on Appraisers

Generally MCA Brokers do not have the patience for SBA Loans.

[RichardGerard]

SBA is Sub Prime Dave- don't wish to argue- just clarify.

Banks use the SBA Guaranty on deals they would typically pass on themselves. Why not have the Government act as a safety net? We do a significant amount of bank direct deals without SBA involvement, and many are underwritten more swiftly based on the lenders specific credit model and UW department.

Many SBA Lenders prefer the 350k + space but we work with several that utilize expedited or short form. Many of these aggregators and lenders have been slower since PPP. Some of those will use the 'Express' for revolvers only.

We will get Chase referrals in NY Metro area from relationship banker contacts. We do not work with WF, but have several large footprint banks like Citibank, Citizens, Santander, PNC, People and Other Credit Union/smaller footprint referral partners.

I agree many MCA Brokers are not set up to work on Bank or SBA loan- we are happy to.

richard@bccusa.com