Small business financing: 7 best SBA loan lenders
If you think an SBA loan may be the right fit for your business, you are possibly wondering, which lenders offer SBA loans. In this feature, we will outline the best SBA lenders based on data from the SBA itself. We will explore the reasons why every lender made it onto the list.
Live Oak Bank
Live Oakbank was established as a way to offer veterinary services with financing outside of the broken traditional banking system. In recent years, this bank has expanded to service other fields, including but not limited to healthcare, insurance, and agriculture. What makes Live Oak Bank strike out is its teams of experts. Every team focuses on a particular industry to assist small businesses receiving loans and offering guidance through the duration of the loan. As proved by the billions of dollars, this strategy works, the organization has loaned to small business owners.
Live Oak Bank’s most famous option for SBA financing is the 7(a) loan, which offers small business owners up to $5 million with repayment terms for up to twenty-five years. This lender provides funding options for acquiring a business, refinancing, and expansion. For businesses impacted by COVID-19, Live Oak Bank will also participate in the (PPP) Paycheck Protection Program outlined in the ARES stimulus package.
As an SBA Preferred Lender, Live Bank assists borrowers in getting SBA-backed loans faster than other lenders. Even though all SBA loans are competitively priced, Live Oak keeps its fees and interest rates on the lower side to make this kind of financing even more affordable and accessible. To qualify, borrowers must have at least a personal credit score of 680. The borrower must also have been in business for not less than three years. Businesses in all fifty states can apply through Live Oak Bank’s website. Potential borrowers can select to work with an industry-specific team or team that works within all industries.
The Huntington National Bank
The Huntington National Bank was established in 1866. Since its foundation, it has grown to have over eight-hundred branches in seven states: West Virginia, Pennsylvania, Michigan, Kentucky, Indiana, Illinois, and Ohio. Huntington National Bank provides several financial products for consumers, commercial needs, small businesses, including SBA loans.
Generally, there are three main SBA loans available to Huntington National Bank clients. This lender offers 7(a) loans for almost any business purpose. For borrowers that prefer the flexibility of 7(a) loans but do not want to wait months to receive their money, Huntington Bank provides SBA Express loans with low-interest rates, faster approval times, and high borrowing limits. Huntington Bank also provides 504 loans to use for business improvements and expansions. Huntington Bank will also offer relief to small businesses affected by Covid-19.
Huntington Nationalbank can connect qualified borrowers with loans of anywhere from %5,000 to $ 5 million. Borrower requirements, terms, and rates vary by product. You can visit your local branch to learn more about Huntington Bank’s SBA loans, or you can email an SBA specialist to get more information on how to get started.
Wells Fargo Bank SWBA loans
Wells Fargo is one of the top popular in the world. Established in 1852, Wells Fargo has grown to serve over seventy-million customers with its selection of commercial, small business, and personal financial products. Business owners looking for the best financing options can use the bank’s online services or visit one of their over 8,000 branches. When it comes to small businesses, Wells Fargo provides two SBA loan options: 540 loans and 7(a) loans. The 7(a) loan offers borrowers with up to $5 million. Repayment terms are up to twenty-five years for commercial real estate purchases or up to ten years for other business purposes.
A 504 loan is ideal for equipment purchases, commercial real estate purchases, or construction. Wells Fargo can loan up to $6.5 million, whereas the borrower might also receive up to $5 million from a (CDC) Certified Development Company. Repayment terms are up to ten years for equipment and machinery purchases or up to twenty-five years for commercial real estate purchases. Wells Fargo will also be participating in the PPP to assist businesses affected by CoronaVirus.
Like other SBA lenders, Wells Fargo has various qualifications that businesses must meet to qualify for the loan. SBA loans are available to companies with a tangible net worth of not less than $15 million and a standard net income of less than $5 million over the past two years. Additional qualifications, including time in business and personal credit score, will be assessed by an SBA specialist at the time of application. Wells Fargo Bank provides an online application. Otherwise, you can visit your local branch to find out more about its SBA loans and other small businesses’ funding options.
Newtek Small Business Finance
The Network Small Business Finance bills itself as Your Business Solutions Company. One of those solutions is offering financing for small businesses, including SBA loans, as Newtek is listed as one of the leading SBA lenders.
Newtek does not specify what SBA loans it specializes in. Nonetheless, the company does state that borrowers can receive as much as $15 million to be utilized for various business purposes. Repayment terms are as long as twenty-five years. Newtek also assists borrowers affected by COVID-19 with Economic Injury Disaster Loans. All applicants should have an existing for-profit business with a minimum of two years of tax returns. Extra requirements can be discussed with a financial specialist. Interested borrowers can get a prequalification by checking Newtek’s website. You can also call, email, or chat with them, or even request them to call you back.
Byline BankÂ
Byline Bank is a financial company that serves the Milwaukee and Chicago metro area through its fifty-two branches. Even though that might seem small when compared to some of the nation’s big-name lenders, Byline Bank is also one of the leading ten SBA lenders in the United States.Do not worry; it is not a must you be staying in Milwaukee or Chicago to obtain an SBA loan via Byline Bank. This institution serves small business loans nationwide and provides many options to meet your business needs.
Byline Bank provides SBA 7(a) loans of up to $5 million. Repayment terms are up to twenty-five years for commercial real estate and up to fifteen years for other purposes. When it comes to equipment purchases or commercial real estate, businesses can apply for 504 loans with repayment terms of ten to twenty-five years.Businesses that need a more flexible option can get a line of credit through the SBA CAPLines plan. Generally, lines of credit are available up to $5million and are suitable for business expansion, covering payroll, filling in revenue gaps, or purchasing inventory. Repayment terms are twelve months to ten years.
Like other SBA-approved lenders, Byline Bank will be participating in the PPP program to assist companies that are negatively influenced by the COVID-19 pandemic. Interested borrowers who stay in Milwaukee or Chicago areas can visit their local branch to start the application process. Borrowers living in other regions can submit an online information form and get a call back from an SBA loan specialist to learn more about the requirements for obtaining an SBA loan, how to apply and what products will fit their needs best.
Celtic Bank
Celtic Bank was established in 2001, so it is the newest lender on the block compared to other lenders on this post. However, do not be footed, since this bank has already become one of the top ten SBA lenders in the country. And the bank has held the title since 2013. It is an SBA Preferred Lender and, thus, processing times might be shorter than working with other lenders.
Via Celtic bank, you can apply for an SBA 7(a) loan with repayment terms of up to twenty-five years and limits up to $5 million. For faster approvals, Celtic Bank provides the Celtic Advantage loan, an SBA-backed product similar to the SBA 7(a) loan. The main difference (other than approval times) is the maximum borrowing amount. With this loan, borrowers can only get a maximum loan of $350,000. Repayment terms of up to twenty-five years are available.
Celtic Bank also offers funds via the 504 loan program. Qualified business owners might receive up to $10 million in financing with repayment terms of up to twenty-five years. Celtic Bank does not explicitly outline the criteria for qualifying for SBA or non-SBA business financing. Instead, you will need to begin the application process online or by calling a toll-free number. After you have done that, you will connect with a lending specialist who will assess your loan options and specific requirements, like minimum credit score, time in business, and revenue.
U.S Bank
U.S Bank has been offering financial services since 1863 when it was known as First National Bank of Cincinnati. All through the years, the banks expanded, and after various mergers, it has become the U.S Bank we know today. U.S Bank is one of the leading five in the nation and offers multiple financial products for businesses and consumers of all sizes. One of the ways that it assists small businesses is through the issuance of SBA loans.
U.S Bank is a provider of three popular SBA loan options. The SBA 7(a) Business loan offers up to $5 million with repayment terms of up to ten years. The SBA 7(a) Real Estate loan offers up to $7 million with repayment terms of up to twenty-five years. Finally, the 504 loan program offers loans up to $11.25 million with repayment terms of up to twenty-five years.
All borrowers should meet credit and business requirements to qualify. Qualifications for SBA loans are less stringent than those of the United States. Bank’s other business loan products. To learn more about how to be eligible for this loan, visit your local U.S Bank branch, or you can begin the process by filling out the bank’s online form.Â
