For many entrepreneurs, access to capital is one of their biggest challenges. Whether launching a new idea, scaling operations, or navigating unexpected obstacles, securing funding is crucial. In today’s episode of the SBA Update, we will explore how the SBA can better assist these challenges. Joining us are Allen Thomas, SBA Regional Administrator, and Christopher Hackney, President of SBA & USDA Lending at BayFirst National Bank.
Firstly, Thomas addresses how shifts in SBA policies have simplified loan access for small businesses. By reducing red tape and streamlining processes, the SBA now facilitates more loans, particularly for amounts under $500,000. “We’ve seen SBA loans grow from 57,000 to 71,000 in a single fiscal year, helping 13,000 additional businesses,” Thomas notes.
Meanwhile, Hackney highlights BayFirst National Bank’s focus on providing working capital loans—cash injections that empower small businesses to expand operations, execute marketing campaigns, or hire new employees. He underscores the bank’s average loan size of $159,000, which demonstrates its commitment to supporting Main Street businesses. Hackney also praises the Lender Match tool, an SBA resource that connects entrepreneurs with lenders actively competing for their business.
Both experts emphasize the importance of preparation when approaching lenders. Hackney advises entrepreneurs to have a clear plan detailing how they will use every dollar of the loan. The SBA’s Community Advantage Loan Program also enables business owners with less-than-perfect credit to secure funding. The SBA guarantees up to 90% of the loan to encourage banks to take on more risk.
Thomas concludes by highlighting the collaborative relationship between SBA lenders and financial institutions, which ensures continuous improvement of loan processes and minimizes borrowers’ pain points.
“Since the changes in SBA regulations, we’ve gone from helping five or six out of ten business owners to now assisting seven or eight. That’s the impact of streamlining processes and focusing on accessibility.” – Allen Thomas
