Our Goal is to connect Qualified Loan Candidates with Lenders who are supporting the Small Business Administration’s new, very favorable, loan packages. This new SBA program is the best we have seen in our 28 years of business. At the present time, SBA loans are being waived and in many cases, 10% is the required down payment.
There are many very good lenders, however, during the last two years most have reassigned or fired their SBA staff. The trick now is to find a SBA lender who is not training a new employee on your loan package. Many Lenders have zero SBA loan officers in certain geographical areas, and are not actually approving any SBA loans. But, many are still advertising that they provide SBA loans. Their internal staff is simply not familiar with the requirements that the SBA requires for their Federal lender loan guarantees. This problem will not be quickly resolved in our opinion, as most of the experienced SBA loan officers have developed new careers. This is a stressful problem that you want to avoid as the delays caused by an inexperienced lender loan officer might cause you to lose an opportunity.
If you have the option of including business related Real Estate in your business loan package, it will significantly improve your chances of a loan approval. All costs / fees of a SBA loan should be almost identical from lender to lender, as the lenders comply with the same SBA guidelines. If you require loan packaging help and most folks do, you should expect an extra cost between $300.00 - $1300.00, depending on your specific needs. It’s just common sense that the best prepared loan packages go to the top of the lender’s SBA pile, in most cases. If a Seller is slow in providing the required financial documents to the lender or the loan package person, then this usually means they do not know how to present their Seller Discretionary Cash properly. This can often be resolved, but this problem needs to be quickly understood or you will waste a lot of time / money and end up not having a closing. An unmotivated seller is not a qualified Exiting party.
As we learn of additional lenders staffing properly for SBA lending, we will display them here. We have picked CIT because they are the largest SBA lender and are actively seeking new lending opportunities from qualified borrowers. David Schmidt is a long time senior CIT SBA loan officer, who can help you.
If you have lending questions or problems, please and Joe will answer you directly or source someone who can help you better than he can. BizAdvocates provides transaction consulting, business plans, business appraisals, buyer or seller representation, loan pre-qualification and packaging, due diligence leadership, Seller’s Discretionary Cash determination and many other transactional services designed to improve a business transfer via considerate communication and real transactional experience. Please see our Track Record at BizAdvocates.com.
We provide this basic service free to you as we believe the best transaction for both the Entering and Exiting parties, long term, is one that has a proper balance of lender financing, seller financing and cash down payment from the acquiring party. Lender financing requires a thorough due diligence on several levels of both parties, which in most cases, greatly improves the entire transaction and enhances the likelihood of the actual consummation of the acquisition.
© 2010 CIT Group Inc. CIT and the CIT logo are registered service marks of CIT Group Inc.
This advertising material is intended for CIT Small Business Lending Corporation customers, clients and partners.
Loan Packaging Services / Disclosure
BizAdvocates’ relationship is one of a referring consultant, who may provide loan qualification tips, plus other needed loan application services for a competitive fee to the prospective borrower (Buyer).
The Buyer is not under any obligation to BizAdvocates.com to use the desired borrowed funds for any business that BizAdvocates.com recommends. This is a disclosure to all parties of a further service to our most probable client, the Seller, as an effort to minimize seller financing and to conclude the proposed business transfer in the most efficient way. There should be no assumption of an actual loan approval from a third party lender by any party. The Buyers designated lender makes all lending decisions. BizAdvocates does not have any authority to bind any lender in any manner.
