For entrepreneurs seeking to start a new business or secure funding for an existing one, Small Business Administration (SBA) loans offer an excellent option, particularly for those with less-than-perfect credit. These loans feature competitive interest rates, with maximum rates ranging from 7.07% to 16.50%. Here’s a detailed look at top SBA lenders, their loan programs, and key considerations for securing the best loan deal for your business.
Top SBA 7(a) Lenders
The SBA 7(a) loan program is one of the most popular choices for small business funding. It provides financial flexibility with favorable terms for various business needs. Below are some of the leading SBA 7(a) lenders for 2024:
U.S. Bank
- Introductory Offer: Up to $5 million for SBA 7(a) loans; up to $12.375 million for SBA 504 loans.
- Loan Terms: 25 years for real estate; 10 years for equipment loans.
- Banking Channels: Online, ATM, Phone, Branch
| Loan Type | Maximum Amount | Terms |
|---|---|---|
| SBA 7(a) | $5 million | Up to 25 years |
| SBA 504 | $12.375 million | Up to 25 years |
Key Takeaways: U.S. Bank offers substantial loan amounts with competitive terms. It is ideal for businesses needing significant capital for expansion or acquisition.
Huntington National Bank
- Introductory Offer: Over $550 million in SBA 7(a) loans for 2024.
- Loan Terms: Up to $5 million; SBA Express loans with faster processing.
- Banking Channels: Online, ATM, Phone, Branch
| Loan Type | Maximum Amount | Terms |
|---|---|---|
| SBA 7(a) | $5 million | Up to 10 years |
| SBA Express | $150,000 | Fast Processing |
Key Takeaways: Huntington leads in SBA 7(a) loan approvals and offers specialized programs for minority-, woman-, and veteran-owned businesses.
Newtek Bank
- Introductory Offer: Over $690 million in SBA 7(a) loans for 2024.
- Loan Terms: Loan amounts from $350,000 to $7 million.
- Banking Channels: Online, ATM, Phone
| Loan Type | Maximum Amount | Terms |
|---|---|---|
| SBA 7(a) | $7 million | Flexible Terms |
Key Takeaways: Newtek stands out for its high loan volume and comprehensive business solutions, making it a strong choice for businesses needing substantial funding.
BayFirst National Bank
- Introductory Offer: Over $240 million in SBA 7(a) loans.
- Loan Terms: Up to $5 million; expedited funding options available.
- Banking Channels: Online, Phone
| Loan Type | Maximum Amount | Terms |
|---|---|---|
| SBA 7(a) | $5 million | Fast Funding |
| BOLT Program | $150,000 | Expedited Processing |
Key Takeaways: BayFirst National Bank excels in fast funding and provides various loan options, including a quick approval program for smaller amounts.
Readycap Lending
- Introductory Offer: Over $330 million in SBA 7(a) loans.
- Loan Terms: $350,000 to $7 million; includes commercial real estate loans.
- Banking Channels: Online, Phone
| Loan Type | Maximum Amount | Terms |
|---|---|---|
| SBA 7(a) | $7 million | Up to 10 years |
Key Takeaways: Readycap offers a broad range of loan amounts and is notable for its flexibility in funding purposes, including commercial real estate.
Live Oak Banking Company
- Introductory Offer: Over $660 million in SBA 7(a) loans for 2024.
- Loan Terms: Up to $5 million; SBA 504 loans up to $15 million.
- Banking Channels: Online
| Loan Type | Maximum Amount | Terms |
|---|---|---|
| SBA 7(a) | $5 million | Up to 90% Bank Financing |
| SBA 504 | $15 million | Larger Projects |
Key Takeaways: Live Oak is highly active in SBA lending with a focus on large projects and efficient online processes.
Conclusion
Choosing the right SBA lender depends on various factors including your credit score, business history, and loan needs. SBA loans offer flexibility and competitive rates, making them a viable option for many small businesses. Consider the loan amount, terms, and lender’s specialization to find the best fit for your business needs.
SBA loans provide a valuable opportunity for entrepreneurs seeking affordable financing options. By selecting a lender with a proven track record and favorable terms, you can maximize your chances of securing the funding needed to grow your business.