Proceeding with multiple SBA banks?

intermediary profile

January 06, 2026

by an intermediary from Vanderbilt University in Dallas, TX, USA

Hi - does anyone have a perspective on signing multiple term sheets and proceeding through underwriting with more than one SBA bank simultaneously to pursue a deal? What are the risks (aside from losing the deposit)?
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commentor profile
Reply by a lender
from University of Central Florida in St. Petersburg, FL, USA
Distasteful, but not illegal. You'll burn the bridge with whichever lender you don't choose in the end. If you're not confident in lender #1 to approve & close your deal, then why are you proceeding with them in the first place? If it's rate you're worried about - unless it's a CONSIDERABLE difference - go with the lender that you're confident will get the deal closed.
commentor profile
Reply by a searcher
from Virginia Polytechnic Institute and State University (Virginia Tech) in Blacksburg, VA, USA
Don’t do this. Work with multiple banks to get multiple term sheets, but then pick a partner and sign only one term sheet. Besides, most banks will ask for earnest money, so you’ll lose ~ $10k if you sign a term sheet and back out.
commentor profile
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