This is great! Sounds like one should vet their lender like any other team member. Do you find that building rapport and creditability leads to better lending terms down the line? I've heard this in real estate, but I'm unsure of the deal volume you need to make it count in the SMB space.

SBA lender here. I would agree with Roger and Brad’s points. Speaking from a lender’s perspective, I would look at the following when talking with a lender.

1. Many SBA shops are not familiar with the search fund model. The SBA rules just changed and a lot of SBA lenders will have a learning curve. It’s important to discuss the bank’s appetite for your type of deal upfront. Using an SBA loan broker who specializes in this space will help that. Live Oak seems to like this model and is in the forefront when it comes to education.
2. I would inquire about the underwriting process for deals. . Some banks give their underwriters lending authority, some have to get credit committee approval. This process can play a role on how long your deal will take to get approved.
3. Does the SBA BDO have a good understanding of their bank’s credit overlays? In addition to the SBA rules, each bank has their own credit overlays which will impact how your deal is structured.

This is to name a few. I’d happy to chat offline if you have more questions.