Byline or Liveoak

January 13, 2024

by a searcher from University of Pennsylvania - The Wharton School in Philadelphia, PA, USA

Hi Everyone! I am currently considering two financing options for a deal that I am under LOI: Byline and Live Oak. I will be funding it using the SBA 7A.

Anyone here have experience with either?

Has anybody used either banks conventional products? Finding the long term partner that can also conventional loans for my future deals is important to me.

Which of the two banks has a larger conventional department and has a larger risk appetite?

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Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA

Great question. Just so you are aware, it is not often Banks move loans from SBA to the conventional side. Since most Banks sell the SBA guaranteed portion of the loan into the secondary market, they do not want to get into the habit of being the source of the repayment on that portion of the loan early as they worry that will impact future sales of loans. If you want to form a relationship with a Bank long-term up front you are going to be best to work with a Bank that holds their SBA loans on their books and has a strong conventional lending team. That is likely going to be a conventional bank that just dabbles in SBA lending or a larger Bank that does not sell any of their SBA loans. Most of the conventional banks or divisions of conventional banks that specialize in SBA lending sell the guaranteed portion of the majority of their loans. Happy to discuss if you need more clarification. Good luck making a decision. Both are good institutions from an SBA lending perspective.

Reply by a searcher
from Bentley University in Exeter, NH 03833, USA

Disclaimer: I have not used Byline or Live Oak. However, I went through pre-approval on a prospective deal with Live Oak, and I really liked the experience and their overall underwriting standards, etc. Live Oak is more conservative and requires a high DSCR (or that was my experience when also assessing other lenders) But I like their approach and diligence. I think they also sort of keep prospective borrowers from getting to far out over their skis and helping to highlight or shed light on any prospective weaknesses. And they add the Revolver to any convention SBA 7(a) because they know people will need the cash / cushion.

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