About Byline Bank
Byline Bank is a Chicago-based community bank and one of the most active SBA Preferred Lender Program (PLP) lenders in the country for small business acquisitions in the $150,000 to $1,000,000 range. What sets Byline apart in the SBA lending landscape is its willingness to approve deals at a 640 minimum FICO score — a threshold meaningfully lower than the 680–700 floor required by most PLP banks and virtually all non-bank SBA lenders (SBLCs).
Founded in Chicago's diverse commercial corridor, Byline has built deep expertise in owner-operated businesses: restaurants and QSRs, car washes, laundromats, dry cleaners, gas stations, and retail strip-center businesses. These are the deal types where Byline's underwriters move fastest and require the least hand-holding from borrowers. The bank's business development officers understand the normalized EBITDA adjustments that characterize cash-intensive service businesses better than almost any lender in its category.
Despite its Midwest roots, Byline lends across all 50 states and has no geographic restrictions for SBA 7(a) applications. The bank also maintains dedicated veteran-friendly programs, offering reduced fees and enhanced support for military veterans pursuing business ownership. For buyers targeting smaller acquisitions — particularly food, service, and retail businesses — Byline Bank is frequently among the first lenders advisors recommend.
SBA 7(a) Loan Products
Byline Bank offers two primary SBA 7(a) products. The SBA 7(a) Standard loan covers transactions from $150,000 up to $5,000,000 and is the workhorse product for business acquisitions, business purchases combined with working capital, and equipment-heavy transactions. The SBA Express loan — available up to $500,000 — features a faster decision timeline, typically 36 hours for credit decisions, and is well-suited for smaller acquisitions or businesses that need a quick working capital injection alongside a purchase.
Byline does not require the seller to have been in business for a minimum number of years, making them viable for younger franchises or businesses with short operating histories that show strong cash flow. Eligible loan uses include outright business purchase, business acquisition with real estate, working capital injection, equipment and furniture purchases, and refinancing of seller notes in some scenarios.
Current Rates & Fees (2025)
Byline Bank prices SBA 7(a) loans using the WSJ Prime Rate plus a negotiated spread. With Prime currently at 7.50%, borrowers with strong profiles and deals above $350,000 typically receive rates at or near the best-available range. SBA guaranty fees apply on the guaranteed portion and are set annually by the SBA — in 2025, these fees have been waived for loans up to $1,000,000 for eligible veteran-owned businesses. All rates below assume WSJ Prime at 7.50%.
| Rate Scenario | Rate (APR approx.) |
|---|---|
| Best available (750+ FICO, strong DSCR) | 10.00% |
| Typical Byline Bank borrower | 10.00 – 10.25% |
| SBA 7(a) maximum allowed rate (>$50K, >7yr) | 10.50% |
Eligibility Requirements
To qualify for an SBA 7(a) loan through Byline Bank, borrowers must generally meet the following criteria. The business being acquired must be a for-profit U.S. entity operating in an SBA-eligible industry. Buyers must have a minimum personal FICO score of 640 — Byline's most borrower-friendly feature. The deal must demonstrate adequate cash flow: Byline typically requires a minimum debt service coverage ratio (DSCR) of 1.25x on a trailing twelve-month basis, though stronger cash flow can partially offset lower credit scores.
Byline requires buyers to inject a minimum of 10% equity into the transaction, which can include seller notes on standby. Business plan and personal financial statements are required for all transactions. Industry experience is preferred but not always mandatory — Byline will consider first-time buyers in their loan category specialties (restaurants, laundromats, gas stations) if the seller is willing to provide transition training. All principals with 20% or more ownership must guarantee the loan.
Pros & Cons
Pros
- ✔ Lowest credit minimum among PLP lenders — 640 FICO accepted
- ✔ $150K minimum serves smaller acquisition deals other lenders won't touch
- ✔ Deep restaurant, retail, car wash, and laundromat expertise
- ✔ PLP status means in-house approval — no SBA submission delays
- ✔ Veteran-friendly programs with potential fee waivers
- ✔ Nationwide lending despite Midwest headquarters
Cons
- ✗ 30–45 day close is not the fastest available in SBA lending
- ✗ Less experience with very large ($3M+) or highly complex deals
- ✗ Industry expertise skews toward food/service/retail vs. professional services
- ✗ Community bank size means fewer resources than national banks for large portfolio borrowers
How to Apply with Byline Bank
Applying for an SBA 7(a) loan with Byline Bank begins by contacting their SBA lending team directly through their website or by phone. Byline does not require an in-person visit — the process is managed remotely for out-of-state borrowers. You will be assigned a dedicated business development officer (BDO) who will walk you through the documentation checklist.
Core documents required at application include: three years of business tax returns for the acquisition target, year-to-date profit and loss statement, three years of personal tax returns for all principals, a signed purchase agreement or letter of intent, personal financial statement (SBA Form 413), and a business plan or management resume. The BDO will order a business valuation, which Byline coordinates through approved third-party appraisers. Because Byline is a PLP lender, once their credit committee approves the deal internally, they can issue the SBA loan number without routing the file back to the SBA — shaving two to three weeks off the typical timeline.
Apply at Byline Bank →Frequently Asked Questions
What is Byline Bank's minimum credit score for SBA loans?
Byline Bank accepts a minimum FICO score of 640 for SBA 7(a) loans, which is notably lower than the 680–700 minimum required by most SBA Preferred Lenders. This makes Byline a strong option for borrowers with imperfect credit who can demonstrate solid business cash flow and a viable acquisition target. A lower credit score may result in slightly higher pricing, but the door remains open where other PLP lenders would decline outright.
Can Byline Bank finance restaurant acquisitions?
Yes. Restaurant and QSR acquisitions are one of Byline Bank's core specialties. Their underwriting team has deep experience with food-service businesses, including quick-service restaurants, sit-down restaurants, and franchise food concepts. They understand normalized EBITDA adjustments common in restaurant financials, which makes underwriting faster and more straightforward. Byline is widely regarded by SBA brokers as one of the top two or three lenders nationally for restaurant acquisition financing.
What is the minimum SBA loan amount at Byline Bank?
Byline Bank's minimum SBA 7(a) loan amount is $150,000. This is meaningfully lower than the $500,000 minimum set by many non-bank SBA lenders (SBLCs), making Byline one of the few PLP lenders actively pursuing smaller acquisition transactions in the $150K–$750K range. Buyers targeting smaller laundromats, single-location restaurants, or small retail businesses will find Byline more accessible than most SBA lenders of comparable quality.
How long does Byline Bank take to close an SBA loan?
Byline Bank typically closes SBA 7(a) loans in 30–45 business days from completed application. As a PLP lender, they have authority to approve loans in-house without sending the file to the SBA for credit approval, which significantly reduces turnaround compared to non-PLP lenders. Complex deals or incomplete documentation can extend the timeline. Borrowers who submit a complete, well-organized package on day one consistently report closings toward the faster end of that range.
Does Byline Bank require an in-person meeting for SBA loans?
No, Byline Bank does not require borrowers to appear in-person, which is important given that they lend in all 50 states. Most of the application process is handled electronically or by phone through a dedicated business development officer. However, some borrowers near the Chicago headquarters may have the option of an in-person meeting if preferred. Out-of-state borrowers regularly close Byline Bank SBA loans without ever visiting Illinois.
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