Live Oak Bank
At a Glance
Start your lender conversations here, then still get a second term sheet elsewhere.
- Pricing
- Custom Pricing, Loan products (no fee to engage). SBA 7(a) up to $5M; combination structures up to ~$9M for $7–10M+ enterprise-value deals; free weekly M&A office hours for buyers targeting $1M–$12M businesses.
- Best For
- Buyers of $1M+ businesses who want the most experienced SBA acquisition lender in their corner from day one
- In the Federal File
- 769 change-of-ownership loans in FY2025, 2nd most in the country, averaging $1.3M each, at an average initial rate of 7.71%. Computed from the SBA's own loan-level data, not from anything the lender publishes.
- Track Record
- The SBA's number-one 7(a) lender by dollars, with a dedicated search-fund practice.
- Type
- Bank (lends directly)
- Footprint
- Nationwide.
- Deal Size
- $500k to above $5M.
- Searcher Practice
- A dedicated searcher and acquisition practice, handled remotely.
- Published Terms
- 7(a) up to the $5M program cap, plus combination structures to roughly $9M.
- Roadmap Stages
- 3. Set Up & Fund the Search5. Diligence & Close the Deal
Where Its Loans Went
2208 change-of-ownership loans across 54 of the industries the loan file ranks, the largest being Plumbing, Heating, and Air-Conditioning Contractors at 165.
- Plumbing, Heating, and Air-Conditioning Contractors165 loans
- Insurance Agencies and Brokerages151 loans
- Home Health Care Services141 loans
- General Automotive Repair131 loans
- Offices of Certified Public Accountants130 loans
- Pharmacies and Drug Retailers118 loans
- All Other Specialty Trade Contractors112 loans
- Funeral Homes and Funeral Services104 loans
- Limited-Service Restaurants90 loans
- Other Accounting Services64 loans
The 10 largest of 54 ranked industries this lender appears in. Counts cover FY2020 through FY2025, from the SBA's loan-level file.
Pros and Cons
Pros
- SBA's #1 7(a) lender FY2025: $2.8B across 2,280 approvals, including 679 acquisition loans totaling $896M, which means deep pattern recognition on deals like yours
- Dedicated search fund lending vertical
- Free weekly M&A office hours open to any buyer
- Can structure past the $5M 7(a) cap with combination loans
Cons
- Acquisition practice skews larger (FY2025 average acquisition loan was $1.32M), so sub-$500k deals aren't the sweet spot
- Its own marketing is inconsistent on the office-hours deal range ($1M floor on one page, $500k on the registration page)
- The bankers who built its search-fund practice have moved on (Heather Endresen to found Viso Business Capital in 2023; Lisa Forrest and Sarah Andrews to Northwest Bank in 2026); the volume leadership is current, the team behind it is not the one its reputation was built on
What Searchers Say
Consistently the first lender named in searcher communities; a Searchfunder thread specifically highlights its self-funded searcher office hours. Volume claims confirmed against SBA FY2025 data; product pages verified live.
How to Approach
Live Oak Bank 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