October 22, 2024
Adam Hoeksema
Finding the right SBA lender can be a challenging process for small business owners. The process is complex, with numerous lenders, each with its own processes, requirements, and preferences. Some focus on specific industries or loan sizes, while others prioritize businesses with a solid record or strong collateral.
As an SBA lender with over 12 years of experience, I understand these challenges firsthand. I served as the Executive Director of Bankable, where we approved more than 1,500 SBA loans across a range of industries. Today, through ProjectionHub, I use my experience to help small businesses create financial projections that align with lender expectations, helping them find the right fit and secure the financing they need.
The SBA releases loan data by lender on their SBA loan dashboard, and for fiscal year 2023 the top lenders are Live Oak Banking Company, The Huntington National Bank, and Newtek Small Business Finance Inc, among others.
This data shows which lenders made the most SBA loans and what their average loan sizes are, helping you understand who’s most active in the market and where to focus your search. However, I wish it were as simple as saying, “Just go to the top SBA lender, and you’ll have the best chance of approval.” Unfortunately, it’s not that straightforward. Each lender has its own criteria and specialties, so being at the top doesn’t necessarily mean they are the right fit for every business. The key is to align your needs with the lender’s strengths.
Let’s take Live Oak Bank as an example. Their average loan size is $1.5 million, which suggests that they are more likely to prioritize businesses seeking larger loans. Larger loans tend to be more profitable for lenders, so if your loan request is smaller, they may not prioritize your needs. This can make navigating the SBA process more challenging.
This is where finding an experienced SBA loan broker can be essential. A broker can connect you with various SBA lenders and find those most interested in your industry, business plan, and model. Working with a broker dedicated to your success can save time by avoiding lenders who may not fully invest in helping you secure financing.
Finding the right SBA lender, despite the challenges, can make all the difference in turning your small business vision into reality. It’s not just about choosing the lender with the biggest name or the highest volume; it’s about finding a partner that truly understands your unique needs and goals. The right lender can provide the support and flexibility needed for a successful partnership. Need help finding your ideal lender? Try our free SBA Lender Finder tool.
If the process of navigating SBA loans feels overwhelming, don’t hesitate to seek professional assistance. Working with experts can save you time and effort, ensuring that your application is both competitive and aligned with what lenders are looking for. If you need help creating financial projections that will make your application stand out – ProjectionHub is here to assist. Reach us out today at support@projectionhub.com, and let’s work together to ensure your business gets the support it needs to grow and succeed.
