Are you trying to start a business, but need funds to get going? Or do you have an existing business that needs a loan to grow?
It can be tough to obtain financing for a new business. Most lenders aren’t willing to take the risk, thinking you might not be able to pay back the loan.
Luckily, there are programs available that specialize in lending to small businesses and entrepreneurs. The SBA has a network of approved lenders ready to administer loans to small businesses that other lenders wouldn’t loan to.
Wondering what the best SBA lenders are, who are likely to provide you with a loan? Keep reading to discover the top 10 SBA lenders, and why SBA loans might be perfect for you.
What Is an SBA Lender?
A Small Business Lender is a third-party lender approved by the SBA or Small Business Association. Loans from an SBA-approved lender are backed by the federal government.
Should the borrower default on the loan and be unable to pay it back, the federal government will reimburse the lender who administered the loan.
SBA loans are perfect for those starting or growing a business that is finding it difficult to obtain financing from other banks or lenders. As a startup, you are too risky to lend to for most lenders.
But with a federal guarantee attached to an SBA loan, lenders can lend to many more borrowers they wouldn’t normally lend to. If you are ready to get funding for your business, then check out these SBA lenders.
1. Live Oak Bank
When looking for the best lenders for SBA loans, you’ll come across Live Oak Bank frequently. That’s because they are the largest provider of SBA loans in the country.
Not only that, but they have many different loan options available in all 50 states. And because they are so large, they have dedicated teams for different industries that they lend to, such as solar energy, beer brewing, or the dental industry.
They work with any and every type of business and have people on their team who has experience serving businesses like yours.
2. Wells Fargo
A household name across the country, Wells Fargo offers a variety of banking and lending solutions. They are also one of the best business loan lenders, offering both online and in-person services.
Multiple loan offerings are available, such as those for purchasing an existing business. Others are available for those looking to obtain land or buy new buildings.
Wells Fargo SBA loans are known for lower down payments and longer repayment terms, which is attractive to many borrowers.
3. Funding Circle
Looking for one of the best online SBA lenders? Funding Circle is a great choice. You can start your SBA loan application online without impacting your credit score.
You can also submit just one application even if you need multiple different loans. For those who need funds fast, you can get funded in as little as 14 days.
4. Readycap Lending
A lesser-known name as it’s not a bank, but just as active when it comes to SBA lending, Readycap is one of the leading originators of SBA loans. They offer a range of loan types, from real estate to SBA and PPP loans.
Their goal is to close a loan quickly so that you can get the funding you need to move forward. They offer SBA 7(a) loans as well as 504 loans, allowing you to grow your business however you see fit.
5. JP Morgan Chase
Chase is the largest bank in the US and has branches across the country. While they don’t offer an online loan application and approval process, it’s easy for most people in the country to reach brick-and-mortar banks.
The in-person loan process is preferred by many borrowers. With SBA 7(a) and 504 loans, Chase also offers SBA Express loans and lines of credit, for those looking for smaller loan limits.
To get started, you’ll either need to call or make an appointment at your local branch.
6. United Midwest Savings Bank
Not every business needs a jumbo-sized SBA loan. With smaller SBA loans available, that’s where United Midwest Savings Bank comes in handy.
They focus primarily on loans under $150,000. Loans are available in all 50 states and an online application and approval process makes things fast and easy.
They are a small and nimble bank, making approval and funding proceed much quicker than with larger banks.
Huntington is a regional bank located primarily in the Midwest, with branches in Florida as well. They offer SBA 7(a), 504, and Express loans. They’re also known for having high approval rates, though don’t provide the largest loan amounts.
You’ll want to be located near a Huntington branch to work with them for an SBA loan, as there isn’t an online process available.
When applying for an SBA loan with Fundbox, you won’t get a hard credit pull. This is a great option for those with a bad or unstable credit score.
Rather than a lump sum loan, you’ll be extended a revolving line of credit. Repayment terms are either 12 or 24 weeks. But you’ll have fast access to cash and application, approval, and repayment is all handled online.
Another non-bank lender, Newtek has focused on funding small businesses since 1998. If your business has been in operation for at least two years, you may qualify for an SBA loan from Newtek.
They have exceptionally long payback periods and large loan limits. And while you can get prequalified online, you’ll eventually speak to a specialist over the phone to finish your application.
A community bank headquartered in Chicago, Byline Bank has a range of SBA loans. They are a very active SBA lender and loans are available in 40 states.
Their focus is helping businesses fund their real estate purchases. They also offer many other business financing options depending on your goals.
Getting a Loan From the Best SBA Lenders
Just because you have a great business idea, or even have a track record in business already, doesn’t mean you are guaranteed a loan. Each SBA lender has specific criteria when it comes to funding.
While requirements may be strict, SBA loans are still the best option for small businesses. And the best SBA lenders will do their best to work with you to grow your business.
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