My partner and I are trying to close an SBA Patriot express loan for about
100K. We are both high earners with excellent credit. Our bank seems
uninterested as they email us weekly usually Friday at 4PM asking for another
additional piece of documentation, etc. They returns our calls about 3 days
later. We have our EIN, LLC etc and are already manufacturing and shipping
product. We have invested ~20% of what they are asking for our capital
outlay. We have been told that after the loan is approved, they will have to
review and approve and then they will send the check for any purchases more
than a few thousand dollars. We are going on 3 months now. Is this typical of
SBA lenders? Any help you can provide is greatly appreciated. We are just
about to the point of going to conventional financing but are trying to watch
and control our expenses very close.
Question: Do you have other relationship accounts with the bank you are
trying to get the SBA loan from? If so, threaten to take that relationship
elsewhere unless you get a decision today. It might spur them into action.
Or, take your concerns over the head of the person you are currently working
with.
While it might sound good to shop around - which you might have to do - it
would be a real pain to have to start the entire process all over again as
well as have additional hits on your credit reports.
Can I ask what you need those funds for? There may be other loan programs
that can get you what you need in as little as a day or two while you wait on
the SBA loan approval.
Question: Do you have other relationship accounts with the bank you are trying to get the SBA loan from? If so, threaten to take that relationship elsewhere unless you get a decision today. It might spur them into action. Or, take your concerns over the head of the person you are currently working with.
While it might sound good to shop around - which you might have to do - it would be a real pain to have to start the entire process all over again as well as have additional hits on your credit reports.
Can I ask what you need those funds for? There may be other loan programs that can get you what you need in as little as a day or two while you wait on the SBA loan approval.
As of right now we do not have any additional financial relationships with
the lender. That would've been the first monies which we would have pulled
given their current treatment of us. We have already contacted another lender
who believes they can close the loan within a few weeks (at least that what
they lead us to believe). The funds will be used for further development of
the business, marketing (finalization of the website), purchasing additional
raw stock, and other operating costs as we move forward. Two of my own
lenders will give me a signature loan for 75K within an hour but again we're
trying to watch costs (9.9% vs 4.25% interest rates and interest only for 6
months). Thank you for your interest and comments.
Read the FAQ section. http://web.sba.gov/faqs/faqindex.cfm?areaID=19.
You will get your answer.
Thank you. We've met all the requirements, pro forma, capital investment as
detailed in those documents. It just seems the bank is now uninterested. I
suspect they're not doing much of this type of lending and are looking for
larger loans.
Did you find your bank through the Preferred Lenders Program? SBA does not lend business owners money directly; it provides a guarantee to banks and lenders for money they lend to small businesses. It may be worthwhile talking to your local SBA office, Small Business Development Center or Veterans Business Outreach Center as they can help provide advice about SBA loans.
Not sure about the Preferred lender program. I'll revisit this and may end up
at another institution. Thank you for your reply and assistance.
From your posting, it seems the SBA backed facility is not your problem, but
the actual lending bank's failure to set reasonable expectations and delivery
with communication is the object of concern. If this is the case, I will
offer to you this recommendation; shop for banking services the same way you
would any meaningful consumer service. Make sure you understand the policy
around the 20% of capital you have invested thus far, which I presume was
simply equity injection for the loan and is 100% refundable minus processing
fees perhaps. I hope this helps you and your partner.
I hope this message finds you well,
From your posting, it seems the SBA backed facility is not your problem, but the actual lending bank's failure to set reasonable expectations and delivery with communication is the object of concern. If this is the case, I will offer to you this recommendation; shop for banking services the same way you would any meaningful consumer service. Make sure you understand the policy around the 20% of capital you have invested thus far, which I presume was simply equity injection for the loan and is 100% refundable minus processing fees perhaps. I hope this helps you and your partner.
I think we're going to be re-visiting our lending institution based on your
comment and the other one on the message board. Do you know off hand if turn
around times are this slow for all institutions? Thank you very much for your
reply.
BMT | Window Shopper | 3/21/2013 - 1:40 pm
trying to get the SBA loan from? If so, threaten to take that relationship
elsewhere unless you get a decision today. It might spur them into action.
Or, take your concerns over the head of the person you are currently working
with.
While it might sound good to shop around - which you might have to do - it
would be a real pain to have to start the entire process all over again as
well as have additional hits on your credit reports.
Can I ask what you need those funds for? There may be other loan programs
that can get you what you need in as little as a day or two while you wait on
the SBA loan approval.
Lungz99 | Window Shopper | 3/21/2013 - 6:01 pm
the lender. That would've been the first monies which we would have pulled
given their current treatment of us. We have already contacted another lender
who believes they can close the loan within a few weeks (at least that what
they lead us to believe). The funds will be used for further development of
the business, marketing (finalization of the website), purchasing additional
raw stock, and other operating costs as we move forward. Two of my own
lenders will give me a signature loan for 75K within an hour but again we're
trying to watch costs (9.9% vs 4.25% interest rates and interest only for 6
months). Thank you for your interest and comments.
bethw | Window Shopper | 3/19/2013 - 1:48 pm
You will get your answer.
Lungz99 | Window Shopper | 3/20/2013 - 1:41 pm
detailed in those documents. It just seems the bank is now uninterested. I
suspect they're not doing much of this type of lending and are looking for
larger loans.
JGabriel | Community Moderator | 3/18/2013 - 1:51 pm
Lungz99 | Window Shopper | 3/18/2013 - 4:11 pm
at another institution. Thank you for your reply and assistance.
CSDIII | Window Shopper | 3/17/2013 - 7:01 pm
From your posting, it seems the SBA backed facility is not your problem, but
the actual lending bank's failure to set reasonable expectations and delivery
with communication is the object of concern. If this is the case, I will
offer to you this recommendation; shop for banking services the same way you
would any meaningful consumer service. Make sure you understand the policy
around the 20% of capital you have invested thus far, which I presume was
simply equity injection for the loan and is 100% refundable minus processing
fees perhaps. I hope this helps you and your partner.
Lungz99 | Window Shopper | 3/18/2013 - 4:14 pm
comment and the other one on the message board. Do you know off hand if turn
around times are this slow for all institutions? Thank you very much for your
reply.
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