The following read will prepare you for meeting an SBA lender. Previously in this blog series, How to Choose an SBA Lender, we discussed the differences between a delegated lender (aka Preferred Lender or PLP) and a non-delegated lender. We’ve also touched on the importance of working with the correct person within a financial institution (i.e., find the SBA specialist). Now it is important to be prepared for the introductory meeting with an SBA lender.
Startup businesses should be prepared to share:
Existing businesses should be prepared to share:
This above information is standard for all SBA loan requests. Other information will be requested based on the loan purpose (franchise information, for example, when applicable).
It is important to come prepared with what the lender will need from you. But, on the other hand, you will also want to be prepared with what you are hoping to learn from your potential lender.
Not all lenders will be interested in the opportunity, which is why it is good to interview several financial institutions. You also want to work with someone with whom you feel comfortable. Below are some example questions to use to help with this process:
Most of us prefer a “yes” to our loan request versus a “no”. However, you definitely want to avoid the “slow no” where someone does not want to be the bearer of bad news and weeks go by without getting a firm answer.
Lastly, you may in fact get multiple lenders who show interest in your loan opportunity. If so, be sure to ask questions about their deposit products and other services that will support your business over the long term. It is easy to get focused on the interest rate or fees, but it is better to understand the overall value.
At Community First Bank of Indiana we have a dedicated SBA lending team with over 29 years of industry experience. If you’d like to inquire about our services, please call us at (765) 236-0600.
