Best SBA-Approved Lenders For 7(a) Loans

Get Started With Live Oak Bank

Total Rating	2.9
Rates & Fees2.1
Services4.4
Eligibility Requirements2.1
Application1.0
Sales & Advertising Transparency4.6
Customer Service3.9
User Reviews3.9

Pros

Most prolific SBA 7(a) lender in 2023
Provides personalized guidance
Available in all 50 states

Cons

Slow application process
Website isn’t very informative

Why Live Oak Bank Is The Top SBA Lender Overall

As an SBA Preferred Lender and the #1 provider of SBA 7(a) loans in 2023 according to the SBA's figures, Live Oak Bank helps borrowers receive SBA-backed loans faster than other lenders.

Live Oak Bank's track record of working with SBA borrowers is second to none. Live Oak Bank is distinguished by its teams of experts, with each team focusing on a specific industry to help small businesses receive loans while providing guidance throughout the life of the loan.

Live Oak Bank Features

Live Oak Bank’s most popular option for SBA funding is the 7(a) loan, which provides small business owners with up to $5 million with repayment terms of up to 25 years. If you’re interested in pursuing a 7(a) loan, our guide to the terms, rates, and eligibility of the SBA’s 7(a) loan program is essential reading.

Live Oak Bank offers SBA 504 loans as well. These loans are exclusively used to purchase real estate and other related purposes.

Live Oak Bank Eligibility Requirements

To qualify for an SBA loan with Live Oak Bank, borrowers need a minimum personal credit score of 680 and a business history of at least 3 years. Businesses in all 50 states + DC can apply online.

Choose Live Oak Bank If...

You’re seeking an SBA loan, and you want to work with the one of the nation’s top providers of SBA loans
You have 3+ years of business history and a personal credit score of 680+

Newtek Lending: Best For Growing Businesses

Newtek Lending

Get Started With Newtek Lending

Total Rating	3.3
Rates & Fees4.2
Services5.0
Eligibility Requirements2.8
Application1.0
Sales & Advertising Transparency2.2
Customer Service4.0
User Reviews2.2

Pros

Multiple types of financing available
Applicants can quickly get prequalified

Cons

Little information on SBA loans is provided online
Company gets mixed reviews online

Why Newtek Is Great For Growing Businesses

Newtek provides funding for small businesses, and this includes SBA loans. As one of the SBA's top 7(a) lenders, Newtek is a good place to seek an SBA 7(a) loan (reportedly, it also offers SBA 504 loans).

In addition to SBA loans with quick prequalifications, Newtek offers a host of other business services that may be beneficial to you. This includes insurance, banking, POS, payment processing, and more. These features make Newtek a great one-stop-shop for growing businesses that want to take advantage of SBA and other business solutions.

Newtek Features

Newtek currently states that borrowers can receive as much as $15 million for various business purposes (SBA loans are generally capped at $5 million, though) and that repayment terms are as long as 25 years.

Newtek Eligibility Requirements

All applicants must have an existing for-profit business with at least two years of tax returns. You can discuss additional requirements with a Newtek financial specialist. Interested borrowers can get prequalified by visiting Newtek’s website.

Choose Newtek If...

You want to quickly and easily be prequalifed for an SBA loan
You want access to other business products, such as POS and insurance

Grasshopper Bank SBA Lending: Best For Fast Prequalifications

Grasshopper Bank SBA Lending

Get Started With Grasshopper Bank SBA Lending

Total Rating	4.2
Rates & Fees4.1
Services4.2
Eligibility Requirements3.9
Application4.3
Sales & Advertising Transparency5.0
Customer Service3.8
User Reviews4.2

Pros

SBA Preferred Lender
Applicants can quickly get prequalified

Cons

Nontransparent rates & fees

Why Grasshopper Bank Is Great For Getting Prequalified Quickly

Grasshopper Bank is a digital bank that offers SBA 7(a) and 504 loans. Grasshopper Bank offers a digital application that makes it easy to apply for a 7(a) loan.

Not only is the application easy to fill out, but you can be prequalified in less than 10 minutes. While you'll still have to submit documentation, provide additional information, and meet all requirements to receive the loan, this quick prequalification process makes it easy to determine if you should pursue an SBA loan or look elsewhere for funding.

Grasshopper Bank Features

Grasshopper offers 7(a) loans from $250,000 to $5 million with repayment terms of 10 to 25 years.

For commercial real estate purchases, businesses can apply for 504 loans, although Grasshopper provides little information on its website about these loans.

Grasshopper Bank Eligibility Requirements

To qualify for an SBA loan through Grasshopper Bank, you must own a US-based business that has been in operation for at least two years. A minimum FICO score of 660 is also required.

Choose Grasshopper Bank If...

You want to prequalify for an SBA 7(a) loan in less than ten minutes

Ready Capital Lending: Best For Veterans

Ready Capital Lending

Get Started With Ready Capital Lending

Total Rating	3.5
Rates & Fees4.4
Services4.3
Eligibility Requirements3.7
Application2.3
Sales & Advertising Transparency3.8
Customer Service2.1
User Reviews2.1

Pros

Offers 7(a) loans up to $7 million
Veteran business owners get preferred pricing

Cons

Time-consuming application process
Some reports of poor customer service

What Makes Ready Capital Great For Veterans

Ready Capital is a non-bank SBA lender. Because it's an SBA Preferred Lender, the application and funding process is especially efficient.

Besides being an SBA 7(a) lender that has topped the SBA's list of prolific lenders, Ready Capital's policies appeal to veterans, who will have packaging fees on 7(a) loans waived.

Ready Capital Features

Through Ready Capital, you can receive up to $7 million through the 7(a) program with repayment terms of up to 25 years.

Ready Capital also offers preferred pricing to veteran business owners, waiving packaging fees for veterans who are receiving a 7(a) loan.

Ready Capital Eligibility Requirements

To qualify for any Ready Capital’s SBA loans, you must have strong personal credit and a debt service coverage ratio (DSCR) of 1.15 to 1.30. Other requirements may apply.

Choose Ready Capital If...

You’re a veteran business owner looking for favorable terms on a 7(a) loan

Celtic Bank Small Business Loans: Best For Express loans

Celtic Bank Small Business Loans

Get Started With Celtic Bank Small Business Loans

Total Rating	3.8
Rates & Fees4.6
Services5.0
Eligibility Requirements4.4
Application3.8
Sales & Advertising Transparency1.6
Customer Service2.2
User Reviews2.3

Pros

Quick SBA-backed Celtic Express loans available as well as 7(a) & 504 loans
SBA loans available in all 50 states

Cons

Nontransparent terms & fees for some loan products

Why Celtic Bank Is Great For Express Loans

Celtic Bank offers a variety of SBA loans to meet the needs of most businesses. In addition to 7(a) and 504 loans, Celtic Bank also has Celtic Express loans, which have fast approval times and can provide up to $150,000.

Celtic Bank is an SBA Preferred Lender, so processing times may be shorter than working with other lenders.

Celtic Bank Features

Celtic Bank offers 7(a) loans with limits of up to $5 million and repayment terms of up to 25 years. A Celtic Advantage loan, which provides $150,000 to $350,000 with repayment terms up to 25 years is also available.

Celtic Bank also offers SBA 504 loans. Qualified business owners may receive up to $10 million in funding with repayment terms of up to 25 years.

SBA Express loans of up to $150K are offered as well. These are referred to as “Celtic Express” loans and come with faster approval times.

Celtic Bank Eligibility Requirements

Celtic Bank generally requires a credit score of at least 640 from its applicants. Unfortunately, Celtic Bank is not forthcoming about its particular loan requirements on its website.

Choose Celtic Bank If...

You want fast approval for SBA loans up to $150K

First Internet Bank: Best For Online SBA Loans

First Internet Bank

Get Started With First Internet Bank

Total Rating	3.3
Fees & Rates2.7
Services5.0
Rewards2.7
Features3.3
Eligibility Requirements3.6
Application Process4.2
Sales & Advertising Transparency2.3
Customer Service2.6
User Reviews2.7

Monthly Fee Range

$0-$5/month

APY Range

0.50%-5.38%

Account Types Offered

Checking, savings, and money market accounts

Pros

7(a), SBA Express, and 504 loans available
SBA loans available in all 50 states

Cons

No physical branches
No eligibility information posted online

Why First Internet Bank Is Great For Online SBA Loans

As its name suggests, First Internet Bank Of Indiana (known primarily as First Internet Bank) is an online-only bank with no physical branches. Nonetheless, the bank is an SBA Preferred Lender and offers several options for SBA loans.

If you're comfortable conducting your application process entirely online, First Internet Bank offers three different SBA-backed loans and is accredited by the BBB with an A+ rating.

First Internet Bank Features

First Internet Bank offers SBA 7(a) loans of up to $5 million. Terms run up to 10 years when you use your loan for business acquisition, working capital/inventory, equipment, or tenant improvement. Terms run up to 25 years when you use your loan for real estate.

First Internet Bank also offers SBA Express loans of up to $350,000. These are offered in the form of term loans or lines of credit, and you can get approved in as little as 48 hours.

The bank also offers SBA 504 real estate loans of up to $5 million. This is a relatively low maximum amount for 504 loans.

First Internet Bank Eligibility Requirements

First Internet Bank doesn’t specify any particular requirements for SBA funding on its website. You’ll need to contact FIB to ask if it has any requirements that go beyond the SBA’s guidelines.

Choose First Internet Bank If...

You’re looking for an SBA Preferred Lender that offers multiple SBA loan types, and you don’t mind an application and support process that is entirely online

Wells Fargo Business Loans: Best Large SBA-Approved Bank

Wells Fargo Business Loans

Get Started With Wells Fargo Business Loans

Total Rating	3.8
Rates & Fees5.0
Services3.9
Eligibility Requirements3.7
Application3.8
Sales & Advertising Transparency4.6
Customer Service1.7
User Reviews1.5

Pros

Website advertising is clear & informative
Many financing types available

Cons

Funds can take time to disburse
Wells Fargo has had a number of scandals in recent years

Why Wells Fargo Is Great As A Large SBA-Approved Bank

Wells Fargo Bank has thousands of US branches and is one of the most well-known banks in the world. If you'd rather deal with a large, established bank than a smaller online lender when seeking an SBA loan, consider Wells Fargo.

Wells Fargo has consistently been on the SBA's list of most prolific 7(a) lenders. Additionally, the bank offers a wealth of other personal and business lending and banking options that may benefit you.

Wells Fargo Features

Wells Fargo offers two SBA loan options for small businesses: 7(a) loans and 504 loans. The 7(a) loan provides borrowers up to $5 million. Repayment terms are up to 25 years for commercial real estate purchases or up to 10 years for other business purposes.

For the 504 loans, Wells Fargo will lend up to $10 million, while the borrower may also receive up to $5 million from a Certified Development Company (CDC). Repayment terms are up to 25 years for commercial real estate purchases or up to 10 years for machinery or equipment purchases.

Wells Fargo Eligibility Requirements

The only eligibility requirement Wells Fargo lists for SBA loans is that applicants must have a net worth under $15 million and an average net income under $5 million.

Choose Wells Fargo If...

You’re looking for an SBA loan from a large bank with numerous physical branches

Business Loan & Funding Products Review Methodology

We spend hours researching and evaluating each business loan and funding product that we review at Merchant Maverick, placing special emphasis on key characteristics to generate our ratings.

Weighted Rating Breakdown

Rates & Fees 20%

Services 20%

Eligibility Requirements 20%

Application 15%

Sales & Advertising Transparency 10%

Customer Service 10%

User Reviews 5%

When rating lenders and funding providers, we use a 31-point rubric that looks at rates and fees, services, eligibility requirements, application, sales and advertising transparency, customer service, and user reviews. We weigh each section differently to calculate the total star rating. This rubric is applied to traditional term loans, as well as short-term loans, start-up loans, lines of credit, online lending products, merchant cash advances, and equipment financing products.

Rates & Fees: 20% of the total star rating
Services: 20% of the total star rating
Eligibility Requirements: 20% of the total star rating
Application: 15% of the total star rating
Sales & Advertising Transparency: 10% of the total star rating
Customer Support: 5% of the total star rating
User Reviews: 5% of the total star rating

Each section is further broken down into granular, weighted subsections, in which we examine specific attributes like terms lengths, conditions of repayment, credit score and revenue requirements, ease of application, length of time to funding, the ethics involved in promoting the lending product, customer support, and the overall reputation of the lender or funding provider.

Read more about how we rate small business lenders.

The Top 10 Most Prolific SBA Lenders

The SBA publicly discloses information about its loans, including its most prolific lenders. Here’s a breakdown of the top SBA lenders (based on SBA data), which includes options found above, as well as a few other lenders to consider in your search for funding.

	SBA Loan Types Offered	7(a) Funds Lent In FY 2023
Live Oak Banking Company	7(a), 504	$1,848,315,000
The Huntington National Bank	7(a), SBA Express, 504	$1,371,775,200
Newtek Small Business Finance	7(a), 504	$813,898,300
Readycap Lending	7(a)	$572,979,900
Byline Bank	7(a), CAPLines lines of credit, 504	$536,399,800
Celtic Bank Corporation	7(a), SBA Express, Celtic Advantage, 504	$509,991,100
BayFirst National Bank	7(a), Bolt SBA loans (SBA Express), FlashCap loans	$495,181,900
TD Bank	7(a), SBA Express, 504	$484,461,600
First Internet Bank Of Indiana	7(a), SBA Express, 504	$454,767,000
Wells Fargo Bank	7(a), 504	$427,603,100

How To Find Top SBA Lenders Online

It is entirely possible to secure an SBA loan online. Just know that the online process can still take time and requires you to complete specific tasks, such as uploading financial reports, filling out applications, and signing documents. Communicating with your lender and completing steps in a timely manner are critical steps to securing an SBA loan.

Check with lenders that you have an existing relationship with to see if they offer online loans. You could also apply for an SBA loan through an online marketplace like Fundera, Lendio, or SmartBiz. These platforms clearly outline requirements, rates, and terms and allow you to apply for and receive funding right from your home or office.

5 Tips For Choosing The Best SBA Approved Banks For Your Business

Still not sure which SBA participating lender is right for your business? These five tips can help you narrow down your options.

Talk To Lenders You've Worked With In The Past

Rather than blindly choosing a lender you have no experience with, talk to banks, credit unions, and other lenders with which you have a pre-existing relationship. This may cut down on the amount of paperwork you have to submit (e.g., bank statements).

If these lenders don’t offer SBA funding, they might point you in the right direction.

Make Sure You Meet All Requirements

Few things are more disappointing in business than having your loan application denied. To avoid this problem, make sure that you (and your business) meet all requirements for receiving an SBA loan. Most lenders require at least two years in business, along with the tax returns to back it up.

You should also have a solid credit score. In most cases, this is around 680, but some lenders may consider lower scores. You should also have enough revenue to pay back the loan and enough money to cover a down payment if required.

Some lenders also look at your DSCR as well as your debt-to-income ratio. We can help you calculate your debt-to-income ratio and learn how to lower it.

You must also meet the requirements of a small business as set by the SBA. This limits the number of employees you have, as well as your annual revenue.

Determine Which SBA Loan Type Is Best For Your Business

The SBA 7(a) loan offers high limits for most borrowers and can be used for nearly any purpose, making it a solid choice for many businesses. However, there may be other loan options that better suit your needs.

For example, an SBA line of credit might be more appropriate than a loan that comes in one lump sum. Perhaps your business has smaller needs that could be met with an SBA microloan.

Every business situation is unique, so every business has different financial needs. Make sure to explore all SBA funding options and choose a lender that offers the right product for you.

Choose An SBA Preferred Lender

While many lenders offer SBA loans, not all lenders have the experience to help you through the process efficiently. Choose an SBA Preferred Lender with experience in these types of loans to ensure you get your funding as quickly and easily as possible. You may even want to take it a step further and choose a lender that has experience with your specific industry.

Look For Lenders With Multiple Product Offerings

Work with a lender that offers SBA loans, lines of credit, equipment financing, or other financial products. If you don’t qualify for an SBA loan, you may qualify for other financing.

Or, if you need capital now and don’t have weeks (or longer) to wait for SBA funding, make sure that your lender has other options or can at least refer you to other institutions that can provide you with what you need.

Learn How To Apply For An SBA Loan

If you’re looking for a quick rundown of how to apply for an SBA loan, follow these steps:

Check if you meet SBA loan requirements
Review your credit report and score
Choose an SBA loan program
Find an SBA partner lender
Put together an SBA loan application
Complete and submit your loan application
Wait for loan approval

Before you get started, note that this can be a drawn-out process, so make sure you’re ready to invest the time needed to close your loan efficiently. Your lender could reach out during the process for more information or documentation at any time, so be ready to respond.

Which Of The Top SBA Lenders Is Right For Your Business?

With this list of reputable SBA lenders, your search for an SBA loan may be easier. Before applying, however, make sure that you’re familiar with the SBA’s small business guidelines to make sure you qualify.

It’s also a good idea to consider other ways you can strengthen your business loan application.

These are just a few tips to get you started. The process can be daunting, but if you can ultimately secure one of these low-cost loans, the work you put forth will be worth it several times over!

FAQs: Top SBA Lenders For 7(a) Loans

What is a preferred SBA lender?

SBA Preferred Lenders (PLP, or Preferred Lenders Program) have more authority to approve SBA loans. PLP lenders tend to be faster than other SBA lenders because they don’t need to wait on the SBA for final credit decisions.

Which bank is good for SBA?

Any bank designated as an SBA Preferred Lender is a good place to seek an SBA loan. These SBA approved banks are able to process SBA loan applications more quickly than ordinary banks, as the SBA gives them the authority to make credit decisions.

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Erica Seppala

Editor & Senior Staff Writer at Merchant Maverick

Erica began writing on small business topics in 2008. She joined Merchant Maverick in 2018 and focuses on loans, accounting, and POS. She is a Certified ProAdvisor for QuickBooks Online and QuickBooks Payroll. She has been cited in MSN, Reader's Digest, Vox, U.S. News & World Report, and Real Simple. She is a graduate of Limestone University and resides in Greenville, South Carolina.

View Erica Seppala's professional experience on LinkedIn.

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Sources

SBA 7(a) & 504 Lending Report (Accessed 11/04/2024) — U.S. Small Business Administration

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1. Live Oak Bank

❮ ❯

Best overall SBA lender
Provides personalized guidance
Loans available in all 50 states

2. Newtek Lending

❮ ❯

Best for growing businesses
Multiple types of funding available
Quick prequalification offered

3. Grasshopper Bank SBA Lending

❮ ❯

Best for fast prequalifications
Grasshopper Bank is an SBA approved lender
Prequalify for a 7(a) loan in just minutes

4. Ready Capital Lending

❮ ❯

Best SBA loans for veterans
Ready Capital is an SBA Preferred Lender
Veteran business owners get certain loan fees waived

5. Celtic Bank Small Business Loans

❮ ❯

Best for Express loans
SBA-backed Celtic Express loans available with quick approval times
Celtic Bank is an SBA Preferred Lender

6. First Internet Bank

❮ ❯

Best for online SBA loans
Three different SBA-backed loan products available
Up to $5 million in SBA-backed funds available per loan

7. Wells Fargo Business Loans

❮ ❯

Best large SBA approved bank
7(a) & 504 loans available
Many other financing types available