Local SBA lender relationship vs. shopping the deal through a broker

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May 04, 2026

by a searcher from Emory University - Goizueta Business School in Boston, MA, USA

Trying to figure out the right approach on SBA financing and curious how others have weighed this. Option A: Build a relationship with a local SBA lender(s) during search, before I have anything under LOI. They get to know me and the thesis, and we can move fast when a deal materializes. Option B: Wait until I have a deal, then use a broker to run a competitive process across multiple banks on rate, structure, etc. My instinct is the direct relationship pays off most when things get sticky in DD and I value someone who is local, but I assume the broker route will get better terms. What else am I missing when thinking through these 2 options?
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Reply by a lender
from Cornell University in Los Angeles, CA, USA
Hi Anon - nice to meet you. Great question and one that comes up a lot. Both approaches can work but here are a few things worth considering on the broker side. Better rates. A good broker does enough deal volume with specific lenders that they often get access to pricing you wouldn't get walking in on your own. When you are one deal to a bank vs. someone who sends them deals regularly, that volume matters. Knowing who fits your deal. Not every SBA lender is the same. Some are better with certain industries or deal structures than others. A broker already knows which lenders are the right fit for your specific deal so you are not wasting weeks with a bank that was never going to get it done. Loan packaging. Every lender wants to see things presented a certain way. A broker puts the package together exactly how that lender needs it, which cuts down on back and forth and keeps things moving smoothly toward close. The local relationship idea makes sense on the surface but keep in mind most buyers only do one acquisition. It is tough to build a deep enough relationship over a few conversations that really moves the needle when things get complicated. A good broker already has those relationships built and you get to benefit from them on day one. We have a lot experience financing various companies via the SBA. If you ever need help reviewing a deal, I am happy to help. We work with all the major SBA lenders. The bank pay us after your loan closes, so this is a 100% free service for you. You can email me directly at redacted or schedule a meeting with me: https://cal.com/francodeguzman/30min. Look forward to chatting!
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Reply by a searcher
from Howard University in Washington, DC, USA
perhaps do both and disclose to broker you have a few lender relationships already
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