First Internet Bank (SBA lending)
At a Glance
A strong second or third term sheet for mid-size and larger SBA deals, especially if you want the whole process remote.
- Pricing
- Custom Pricing, Loan products; no fee to engage. 7(a) to $5M with 10-year terms for acquisitions and 25 for real estate; Express to $500k; no prepayment penalty on terms under 15 years (per firstib.com, August 2026). Rates are quoted per deal and not published.
- Best For
- Searchers anywhere in the US who want a larger-deal SBA bank with a fully remote process; its bankers are visible in search-fund and university ETA circles
- In the Federal File
- 251 change-of-ownership loans in FY2025, 3rd most in the country, averaging $1.5M each, at an average initial rate of 10.05%. Computed from the SBA's own loan-level data, not from anything the lender publishes.
- Track Record
- A branchless nationwide SBA lender with acquisition as the headline use.
- Type
- Bank (lends directly)
- Footprint
- Nationwide.
- Deal Size
- $500k to $5M.
- Searcher Practice
- A general SBA lending desk, handled remotely.
- Published Terms
- 7(a) to the $5M cap; Express to $500k with decisions inside 48 hours.
- Roadmap Stages
- 3. Set Up & Fund the Search5. Diligence & Close the Deal
Where Its Loans Went
125 change-of-ownership loans across 13 of the industries the loan file ranks, the largest being Plumbing, Heating, and Air-Conditioning Contractors at 22.
- Plumbing, Heating, and Air-Conditioning Contractors22 loans
- All Other Specialty Trade Contractors17 loans
- Landscaping Services13 loans
- Electrical Contractors and Other Wiring Installation Contractors10 loans
- All Other Personal Services9 loans
- Commercial Printing (except Screen and Books)8 loans
- Residential Remodelers8 loans
- Advertising Agencies7 loans
- Janitorial Services7 loans
- Other Computer Related Services7 loans
The 10 largest of 13 ranked industries this lender appears in. Counts cover FY2020 through FY2025, from the SBA's loan-level file.
Pros and Cons
Pros
- Nationwide online model with no branch-footprint constraints
- Acquisition is the stated primary 7(a) use, with partner buyouts explicitly covered
- Named 2024 Online Lender of the Year by the Coleman Report, per its site
- SBA bankers who work directly with searchers and university ETA programs, so search-style structures need less explaining
Cons
- No published rates or fees; quotes only
- Acquisition-volume claims are not independently published by the bank, so treat top-lender framing as directional
- Online-only: there is no local banker to sit across from if that matters to you
What Searchers Say
Its SBA bankers appear across searcher podcasts and university programs, and FOIA-based lender roundups describe it as a larger-deal acquisition lender with average loans above $1M. Community threads are thinner than for Live Oak; ask for searcher references at your deal size.
How to Approach
First Internet Bank (SBA lending) is a bank, so this is how that kind of lender comes in, what it weighs, and how to arrive ready.
The Typical Arc
- A prequalification on you and the target, often from the first email.
- A full application and the bank's own underwrite of the deal.
- A term sheet, then closing on the SBA's timeline, commonly two to four months.
What It Weighs
- Whether the business's cash flow covers the debt with room to spare.
- Your experience relative to the business you are buying.
- Your equity injection and how clean the financials are.
How to Prepare
- Model the payment and coverage before you call. SBA Acquisition Calculator
- Underwrite the specific deal end to end. Underwrite a Deal
- Show where every dollar comes from and goes. Sources & Uses Builder