Level of Industry Experience Preferred by SBA Lenders

searcher profile

January 20, 2022

by a searcher from University of Michigan - Ann Arbor in Derry, NH 03038, USA

Looking to find out how much experience SBA lenders look for in applicants. Was anyone denied due to lack of experience? Our search is still broad in its scope, so we haven't eliminated many industries from our criteria, but we received some feedback from a broker that suggested that this could be a barrier for acquiring some businesses with an SBA loan.

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commentor profile
Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA
One of the underwriting criteria for SBA loans is experience. However, I have found it does not necessarily need to be direct industry experience. If it is relatable industry experience that can work. It largely depends on how complex the industry is. If you are going into a highly technical field, then usually they would want more experience. Also, if you have team members or key employees that you can give a minority ownership to but also get to guarantee the loan that have that industry experience, this is another way to usually resolve that concern. Happy to discuss options at any time at redacted
commentor profile
Reply by a lender
from Sam Houston State University in 5324 Community Dr, Houston, TX 77005, USA
What you really need to show is how your experience will help you operate the target business.Focus on transferable skills and be sure to work with an experienced SBA lender.Feel free to reach out and we can discuss###-###-####
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