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.

Approval Authority

Says it holds SBA Preferred Lender status, so it can approve the loan itself rather than sending the file to the agency for a second look.

Deal Size

$500k to $5M.

Publishes no floor. Most of this shelf gives a ceiling that is really the agency's own cap, and no minimum at all.

Searcher Practice

A general SBA lending desk, handled remotely.

Branchless by its own SBA page, which says "No branches" and calls it a digital-first bank with a streamlined online application, the same shape as Newtek.

Its SBA loans page never mentions a search fund, but its own page for SBA officer Jared Johnson says he works closely with search funds and names the Entrepreneurship Through Acquisition ecosystems. No page is named for a searcher practice.

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

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

1. A prequalification on you and the target, often from the first email.
2. A full application and the bank's own underwrite of the deal.
3. 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

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