Best Online SBA Lenders Compared

If you're a small business owner looking to secure a loan, you're likely no stranger to the idea of working with an SBA lender. Online SBA lenders offer a convenient and efficient way to access the funds you need to grow your business.

Some online SBA lenders are better than others, which is why we've put together a comparison of the top options.

One lender that stands out is Funding Circle, which offers loan amounts ranging from $25,000 to $500,000.

An SBA lender is a financial institution that provides loans to small business owners through the Small Business Administration (SBA) loan program.

SBA lenders are typically banks, credit unions, and other financial institutions that are approved by the SBA to offer these loans. They can be online lenders or traditional brick-and-mortar banks.

The SBA guarantees a portion of the loan, usually up to 85%, to reduce the risk for the lender. This makes it easier for small business owners to get approved for a loan.

The SBA lender will assess the creditworthiness of the business and the owner, and may also consider other factors such as cash flow, financial statements, and collateral.

To find the right SBA lender for your business, consider the type of SBA loan program you want. The best SBA lenders will largely be unique to the specific program.

When evaluating lenders, look for criteria such as being a preferred lender, offering the types of SBA loan products you need, and having a loan application process that fits your preferences. A preferred lender can approve your loan without submitting it to the SBA first, saving you valuable time.

Some lenders may have online, expedited application procedures, while others require you to complete the application at a branch. Consider what kind of process you prefer and how each individual lender conducts their application.

Here are some key factors to keep in mind when choosing an SBA lender:

By considering these factors, you can find an SBA lender that meets your needs and helps you achieve your business goals.

An SBA lender is a financial institution that provides Small Business Administration (SBA) loans to small business owners.

SBA lenders can be banks, credit unions, or online lenders that have partnered with the SBA to offer these specialized loans. They must meet the SBA's requirements and follow their guidelines to ensure that borrowers receive fair and competitive terms.

SBA lenders typically offer a range of SBA loan products, including the 7(a) loan, the 504 loan, and the Microloan. Each loan product has its own benefits and requirements.

SBA lenders must also have a good track record of serving small businesses and have demonstrated their ability to manage SBA loans effectively. This is a key factor in determining whether a lender is eligible to participate in the SBA loan program.

Choosing an SBA lender requires careful consideration of several key factors. A preferred lender can process your application faster, which is essential if you need a loan quickly.

To identify a preferred lender, look for lenders that are listed as preferred lenders online. This status indicates that they have a streamlined process for SBA loans.

Some SBA lenders offer a range of loan products, including different types of loans and varying loan amounts. Consider what types of loans you need and what loan amounts you require.

Loan terms, interest rates, and qualifying criteria can vary significantly between lenders. Research each lender's offerings to determine which one best meets your needs.

A lender's loan application process can be a major factor in your decision. Some lenders have online, expedited application procedures, while others require you to complete the application at a branch.

Here's a summary of lender qualities to consider:

A lender's reputation and customer service can also impact your decision. Look for lenders with good online reviews and a strong reputation in the industry.

To find the best SBA lender for your business, consider evaluating prospective lenders based on criteria such as being a preferred lender, types of SBA loan products offered, loan amounts, loan terms, interest rates, and qualifying criteria.

You can also look for lenders with a simple online prequalifying form to help you evaluate your eligibility for SBA loans and other business financing options.

The SBA 7(a) loan is the most common SBA loan, allowing you to borrow up to $5 million in funds for almost any purpose.

The top SBA lenders for the 7(a) program are part of the SBA's Preferred Lender Program, which means they can approve applications for SBA funding without submitting the application to the SBA first, saving you valuable time.

Here are some things to keep in mind when choosing an SBA lender:

Some SBA lenders can approve your loan without going through the SBA first, shortening the approval time and getting your loan approved three to four weeks faster than with non-PLP lenders.

To qualify for an SBA loan, you must be a for-profit business operating in the U.S., have invested equity into the business, demonstrate a need for financing, show creditworthiness, be a small business as defined by the SBA, and have tried to get financing from non-government sources before turning to an SBA loan.

Choosing an SBA lender can be a daunting task, but understanding the pros and cons can help you make an informed decision.

SBA loans have broad eligibility requirements, making them a viable option for companies that can't secure traditional financing.

One of the biggest advantages of SBA loans is that they have capped interest rates, set by the SBA based on the prime rate, which helps keep loans affordable for small business owners.

Small business owners can access resources, training, and support through a local SBA resource center.

The SBA offers a wide range of funding amounts, from $500 to $5 million and beyond, to cover various expenses.

SBA loans often have longer repayment terms, with some going as high as 360 months, compared to other types of small business financing.

However, SBA loans typically require a down payment of 10% to 30% to secure the funds.

Some SBA lenders may also require collateral and/or a personal guarantee to reduce lender risk.

The approval and funding timeline for SBA loans can take up to 60 to 90 days, which may not be ideal for businesses that need quick access to funds.

To qualify for an SBA loan, borrowers typically need a personal FICO Score of 680 or higher.

Some popular SBA lenders include Live Oak Banking Company and Byline Bank. Live Oak is the largest SBA lender in terms of total dollar amount approved.

Live Oak Bank offers SBA 7(a) and SBA 504 loans with repayment terms of up to 25 years and varying interest rates. They digitally serve borrowers in all 50 states and have a digital presence only, with no local branches outside of their headquarters in Wilmington, N.C.

Byline Bank is the top SBA lender in Illinois and Wisconsin and offers SBA 7(a) loans, SBA 504 loans, and SBA CAPLines for businesses with cyclical needs. Their SBA 7(a) loans are available in amounts up to $5 million with terms of up to 25 years.

Here are some of the top SBA lenders listed:

These lenders have been recognized for their high volume of SBA loan approvals and total amount approved.

Huntington National Bank is the top regional SBA lender in an area stretching from Illinois to Pennsylvania.

They offer a variety of SBA loan products, including SBA 7(a) loans, 504 loans, SBA Express loans, and a loan product called Lift Local Business loans geared toward women, veterans, and racial and ethnic minorities.

Their loan products have varying limits, terms, and rates.

Huntington National Bank is also the nation's largest SBA 7(a) loan originator by volume.

They are a great option for businesses looking for flexible financing options.

Wells Fargo Bank is a California-based financial services provider that's an SBA-preferred lender. They offer SBA 7(a) and SBA 504 loans for businesses with specific financial requirements.

Loans from Wells Fargo are available up to $5 million with fixed or variable interest rates. Terms can go up to 25 years for commercial real estate loans and up to 10 years for other loans.

For 504 loans, Wells Fargo provides amounts up to $6,500,000 for the portion guaranteed by them, and up to $5 million for the portion guaranteed by a Certified Development Company. Interest rates may be fixed or variable, and terms can be up to 25 years for commercial real estate loans.

Businesses with a net worth below $15 million and average net income below $5 million are eligible for these loan products.

The SBA 7(a) loan program is the most common SBA loan, allowing you to borrow up to $5 million for various business purposes.

To find the best lenders for this program, consider working with SBA-preferred lenders, which can save you valuable time when searching for a business loan. These lenders have been authorized by the SBA to approve applications without submitting them to the SBA first.

Live Oak Banking Company currently holds the spot for the top SBA 7(a) lender in the country by lending volume, with 1,552 loans approved and a total amount approved of $2,347,184,900.

Byline Bank is another top SBA lender, offering SBA 7(a) loans in amounts up to $5 million, with terms of up to 25 years for real estate loans and 15 years for other loans.

Here are some top SBA lenders for the 7(a) program:

These lenders are part of the SBA's Preferred Lender Program and offer a range of loan products, including SBA 7(a) loans, SBA 504 loans, and CAPLines loans.

Applying for an SBA loan can be a complex process, but having the right documents and a solid plan can make all the difference.

First, you'll need to gather all the required documents, which can be found on the SBA's website or by contacting your lender directly. Some standard forms you'll likely need include your SBA loan application form (SBA Form 1919), personal financial statement (SBA Form 413), and business plan.

You'll also need to provide current business income statement and balance sheet, business tax returns for the previous three years, and cash flow projections for one year. Additionally, you may need to provide real estate purchase agreements, articles of organization, business licenses and registrations, collateral information, and documentation of any lawsuits, judgments, or bankruptcies.

Having a mentor or business advisor review your SBA loan application before submitting can help strengthen your application and ensure you have all required documents included. You can typically submit an SBA loan application online, although some traditional banks might require a phone call or in-person appointment.

Here's a list of the required documents you'll need to submit:

If approved, the lender will need to get the SBA's approval before moving forward. During this stage, you might need to submit additional documentation. Be sure to thoroughly review the business loan agreement outlining your loan's conditions and terms, and ask your lender for clarification if you don't understand any of the legal terms.