Cover art for podcast My SBA Loan Pro Podcast

My SBA Loan Pro Podcast

48 EpisodesProduced by Ryan SmithWebsite

Applying for an SBA loan can be stressful , grueling and confusing — does this sound familiar? Don’t worry, SBA Pro and Host of the My SBA Loan Pro podcast Ryan Smith, reveals valuable insights and best practices regarding the SBA loan program and application process. Don’t take another step on your… read more


Demystifying The SBA Loan Application Process - Defining The Term Retrade

Seldom are surprises welcomed when applying for an SBA loan to acquire a business, execute a change of ownership or purchase real estate. 

In fact, surprises usually mean a change in terms which may affect the loan's outcome or desirability. 

The official term for this phenomenon is Retrade. 

The term retrade simply means the practice of renegotiating the terms of a transaction after the initial price and terms have been agreed upon.  Unfortunately, SBA lenders are also prone to retrade which may come as a surprise and to the dismay of loan applicants.

Let’s explore when and why a Retrade may occur during the loan application process and more importantly how to avoid them. 

First, we must understand the order of events when applying for an SBA loan.

After submitting a complete loan package it is customary for the lender to issue a Term Sheet also called a Letter of Interest. 

There are three types of Terms Sheets

  1. A term sheet printed upon demand by an inexperienced Business Development Officer without any prior due diligence performed

  2. A term sheet printed on demand by an experienced Business Development Officer with credibility within organization

  3. A Term Sheet approved by a Credit Manager or Chief Credit Officer

It’s easy to understand the veracity of a Term Sheet improves and the likelihood of experiencing a retrade diminishes with more due diligence and higher scrutiny. 

However, take note that Wall Street banks, seen on every corner, are notorious for retrading at any point during the loan application process, even right up to the point of signing loan documents.  

The reason for this phenomenon may be attributed to inexperienced Business Development Officers, decentralized credit decision making authority and an abundance of obscure lending policies unknown even within the organization until after a loan is formally underwritten and reviewed by a credit manager. 

As a rule, I require all of my portfolio lenders to perform a minimum acceptable level of due diligence that includes reviewing the Term Sheet with a Credit Manager or when possible a Chief Credit Officer, significantly minimizing the likelihood of a retrade. 

Further, I require my clients and lenders to speak prior to submitting the loan request to formal underwriting so the lender can confirm the due diligence performed up to that point in an attempt to avoid any surprises including a retrade. 

I have only experienced three retrade events since founding ThinkSBA in 2019. Two of them by Wall Street banks with a decentralized underwriting center and one due to the need to mitigate unsatisfactory personal liquidity at the time of loan committee. Incidentally, all three loans closed.

As I have demonstrated, the most effective way to avoid a retrade is to require a minimum acceptable level of due diligence and scrutiny and knowing which lenders have a higher or lower propensity to change terms after issuing a Term Sheet. 

Good news for my clients is that I consider avoiding surprises and or retrades as my job. Therefore, I take pride in the thoroughness of my process and never take my clients' desired outcome for granted.

Remember, I’m with my clients from start to funding.

Want more? Access our resources on your terms!

⁠⁠ - My SBA Loan Pro Podcast

⁠⁠ - YouTube Channel Subscribe For New Content Weekly!

⁠⁠ - Frequently Asked Questions

⁠⁠ - Google Business Page & Reviews

⁠⁠ - Schedule Call

Educational emoji reaction


Interesting emoji reaction


Funny emoji reaction


Agree emoji reaction


Love emoji reaction


Wow emoji reaction


Are you the creator of this podcast?

Verify your account

and pick the featured episodes for your show.

Listen to My SBA Loan Pro Podcast


A free podcast app for iPhone and Android

  • User-created playlists and collections
  • Download episodes while on WiFi to listen without using mobile data
  • Stream podcast episodes without waiting for a download
  • Queue episodes to create a personal continuous playlist
RadioPublic on iOS and Android
Or by RSS
RSS feed

Connect with listeners

Podcasters use the RadioPublic listener relationship platform to build lasting connections with fans

Yes, let's begin connecting
Browser window

Find new listeners

  • A dedicated website for your podcast
  • Web embed players designed to convert visitors to listeners in the RadioPublic apps for iPhone and Android
Clicking mouse cursor

Understand your audience

  • Capture listener activity with affinity scores
  • Measure your promotional campaigns and integrate with Google and Facebook analytics
Graph of increasing value

Engage your fanbase

  • Deliver timely Calls To Action, including email acquistion for your mailing list
  • Share exactly the right moment in an episode via text, email, and social media
Icon of cellphone with money

Make money

  • Tip and transfer funds directly to podcastsers
  • Earn money for qualified plays in the RadioPublic apps with Paid Listens