Has anyone had luck moving forward with a new SBA loan since COVID-19?

April 08, 2020

by a searcher from Texas A&M University in Dallas, TX, USA

I wanted to better understand my senior lending options as well as current changes to the SBA loan program. I've reached out to a few banks (CBIC & Live Oak), but have not had any success in making contact. I understand most banks are concerned with current loans as well as the CAREs act, but has anyone had success on new SBA loan applications/contacts?

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Reply by a lender
from University of Missouri in St. Louis, MO, USA

Terrance, unless the target acquisition was impacted directly by the coronavirus/shut down, that comment should be a warning signal from your lender. Email me if you would like to discuss (colin.mcnulty@cibc,com) . PPP will have an impact on timing of close for any lender who has even a remote relationship with their customers after they close. However, killing a deal would likely mean bigger issues. I would not say this time is normal by any means, and if that is stated by a lender know they would be a ghost post close to help you navigate things like PPP when it really matters. My 40+ clients and I have had near daily calls/emails/texts over the last 3 weeks so I cannot imagine thinking this is a normal time. We are committed to making sure our clients are helped through this mess. However, we are still doing new loans as long as patience is available.

Reply by a lender
from Nova Southeastern University in Fort Lauderdale, FL, USA

Hi James. I am with First Bank of the Lake and we are absolutely making loans for searchers seeking financing for acquisition transactions. I had a $2,462,000 loan approved just this past Friday and the borrower signed his commitment letter today in fact. We are lending to good people, buying good businesses with good cash flow which is our go to market strategy. There are banks out there lending. That is the message! Yes, some banks have "stalled" perhaps for a few months, but those that are truly supportive and are real SBA Lenders will be back I'm sure.

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